Aug 1 (Reuters) - India's southern state of Andhra

Pradesh on Friday approved a draft scheme offering $600 million

in incentives to boost local manufacturing of electronics

components.

In March this year, India's federal government approved a

similar plan worth a larger 229.19 billion rupees ($2.62

billion) to boost electronics components manufacturing in the

country.

New Delhi and several states have been seeking investments

from electronics components makers and offering subsidies as the

country looks to bolster domestic supply and reduce dependence

on China.

India's electronic production has

more than doubled

in the last six years to $115 billion in 2024, led by

growth in mobile manufacturing by global firms such as Apple ( AAPL )

and Samsung. It is now the world's

fourth-largest smart phone supplier.

The country aims to more than quadruple that to $500 billion

by fiscal 2030, including production of components worth $150

billion, according to the government's top policy think tank

Niti Aayog.

Electronics components firms looking to set up factories in

Andhra Pradesh will be offered land at a discount of 75%, the

state said, adding that they would not have to pay taxes on

electricity consumption for the first six years.

The state also plans to offer a 50% capital subsidy to the

first 10 firms willing to invest 2.5 billion rupees over five

years, or match the subsidy amount New Delhi offers to the

investing company, the state said in its draft policy.

Electronics maker Syrma SGS has applied for

the incentive scheme, the Andhra Pradesh government said.

($1 = 87.4090 Indian rupees)