Semiconductor Manufacturing to Be the Main Attraction for Investors at the Global Investors Summit: Chief Minister Dr. Yadav

Chief Minister Dr. Mohan Yadav stated that semiconductors will be a key attraction at the Global Investors Summit 2025. Recognizing its importance, the State Cabinet has approved the “Madhya Pradesh Semiconductor Policy-2025.” The implementation of this policy has significantly increased the prospects for large-scale investments in semiconductor and electronics manufacturing in the state. There is growing enthusiasm and interest among investors attending the Global Investors Summit regarding this sector, which is expected to attract substantial investment to the state.

Dr. Yadav emphasized that the policy will help establish a sustainable ecosystem, positioning the state as a hub for electronics and semiconductor manufacturing. He highlighted Prime Minister Narendra Modi’s vision of making India a global centre for semiconductor design, manufacturing, and technological development. The Prime Minister believes that India’s semiconductor sector is on the brink of a revolution, intending to achieve 100% domestic manufacturing of electronics and semiconductors. Dr. Yadav expressed confidence that the semiconductor policy will enable Madhya Pradesh to contribute significantly towards achieving Prime Minister Modi’s vision.

The Chief Minister added that this policy will play a vital role in advancing the state in semiconductor manufacturing, attracting domestic and foreign investors, and positioning the state as a leader in global competition. It will also strengthen the local economy and generate employment opportunities for the youth.

Special Provisions to Encourage Investors

Dr. Yadav announced that under the Semiconductor Policy, investors will be provided with capital investment subsidies—either 25% of the total investment or 50% of the subsidy provided by the Government of India, whichever is lower. The state government will offer up to 40% capital investment subsidies (with a maximum of 150 crore rupees) for non-government-approved projects. An interest subsidy of 6% or the applicable interest rate (whichever is lower) will be provided for five years post-establishment, up to a maximum of 10 crore rupees.

Additionally, companies will be offered land at concessional rates under the policy, and a power tariff subsidy of 2 rupees per unit will be provided for the first ten years, reducing operational costs and further incentivizing investments. Projects exceeding 400 crore rupees will receive additional infrastructure support, tax exemptions, and extra financial assistance.

Investment and Employment Projections

The Semiconductor Policy is expected to attract 2,700 crore rupees in investment over the next five years, resulting in 3,782 crore rupees in exports and 1,702 crore rupees in state GST revenue. Furthermore, the policy aspires to create 14,400 job opportunities within the state.

Promotion of Public-Private Partnerships (PPP)

The Madhya Pradesh Semiconductor Policy-2025 will actively promote Public-Private Partnerships (PPP), fostering collaboration between government bodies, educational institutions, and the private sector. This approach will also encourage Foreign Direct Investment (FDI) and international cooperation, bringing global expertise and technology into Madhya Pradesh.

Incentives for Research and Development

Dr. Yadav highlighted that the policy will provide special incentives to companies investing in research and development (R&D) and technological innovation within the semiconductor and electronics sectors. A dedicated fund will offer financial support for semiconductor technology research.

The state government has also introduced a simplified regulatory framework to streamline and expedite the approval process for new projects. This commitment aims to minimize delays and facilitate the establishment and expansion of industrial units in the state.