India’s electronics manufacturing services (EMS) sector is rapidly gaining momentum as global supply chains undergo significant realignment. In a bold move, Kaynes Electronics has announced plans to invest INR 3.52 billion to establish a cutting-edge facility in Bhopal. This highlights Central India’s emerging role in the nation’s strategy to attract electronics production as companies look beyond China.
Kaynes Electronics, a part of Kaynes Technology India Ltd, is setting up a state-of-the-art manufacturing plant under the Madhya Pradesh Semiconductor Policy 2025. Situated in Badwai IT Park, the plant will span five acres and is poised to create over 1,000 skilled jobs, with commercial production expected by mid-2026.
The new facility will boast advanced Surface Mount Technology (SMT) lines, catering to a wide range of sectors including automotive, aerospace, defense, medical, industrial, IoT, and space technology. This venture marks Kaynes’ first significant investment in Central India and complements its existing facilities across the nation.
Madhya Pradesh’s Semiconductor Policy 2025 provides substantial infrastructure support, financial incentives, and focused skill development to attract tech industries. The state’s science and technology department under the Cabinet Committee on Investment Promotion (CCIP) is backing this project. CEO Raghu Panicker of Kaynes Electronics praised the proactive support from the state government as pivotal in selecting Bhopal for this investment. State officials noted that the investment reflects growing industry confidence in Madhya Pradesh’s ambition to become a hub for semiconductor and electronics manufacturing.
This announcement comes on the heels of another significant investment in Perumbavoor Industrial Park, which aims to create over 2,000 jobs with an INR 5 billion infusion. As companies diversify their supply chains, India is becoming a key destination for electronics manufacturing services.
With strong governmental support, India is propelling its semiconductor and electronics sectors forward with INR 11.11 trillion in capital spending under three major incentive schemes—PLI, SPECS, and EMC 2.0. Additionally, a new INR 229.2 billion initiative will launch in 2025 to bolster local component, subsystem, and equipment manufacturing.
