What is Electronics Hardware Technology Park Scheme? Find Key Details Here

In an era where technology is shaping every aspect of our lives, India is taking significant strides to strengthen its electronics manufacturing capabilities. Recognizing the immense potential of the electronics hardware sector, the Ministry of Electronics and Information Technology (MeitY) has introduced the Electronics Hardware Technology Park (EHTP) Scheme—a focused initiative designed to promote domestic electronics production and boost exports.

The EHTP Scheme complements the long-standing Software Technology Park (STP) scheme, extending similar benefits to hardware manufacturers. It aims to create a conducive ecosystem for electronics production while making Indian exports globally competitive. By offering a mix of regulatory support, tax incentives, and infrastructure benefits, the scheme is attracting domestic startups and international investors alike.

What is the EHTP Scheme?

The Electronics Hardware Technology Park (EHTP) Scheme is an export-oriented initiative that encourages the manufacture of electronics hardware products in India. It allows eligible units to operate with significant operational and fiscal advantages, ultimately reducing costs and promoting innovation in electronics manufacturing.

The scheme is implemented by the Software Technology Parks of India (STPI) and targets electronics hardware manufacturers looking to export their products to global markets.

Key Benefits of EHTP for Startups and Manufacturers

The EHTP Scheme provides several benefits that make it particularly attractive for startups and small to medium electronics companies:

1. Duty-Free Imports

Units under the EHTP Scheme can import capital goods, raw materials, and components duty-free. This significantly reduces operational costs and encourages investment in state-of-the-art manufacturing technologies.

2. Simplified Customs Procedures

The scheme streamlines customs documentation and procedures, ensuring faster clearance of imported goods and exports. This ease of operation is a major incentive for hardware exporters aiming for efficiency and speed.

3. Tax Incentives

Eligible units can enjoy various tax exemptions, including relief from Goods and Services Tax (GST) on exports and income tax benefits for a specified period. These incentives enhance profitability and make scaling operations easier.

4. 100% FDI under Automatic Route

The scheme allows 100% foreign direct investment under the automatic route. This facilitates easy access for foreign investors and global collaborations, accelerating technology transfer and capacity building.

5. Infrastructure Support

Through STPI, units can access high-quality infrastructure, including plug-and-play facilities, ready-to-use office spaces, and high-speed internet. This is particularly beneficial for startups and smaller companies that may not have large capital to invest in their own infrastructure.

6. Export-Oriented Focus

Units are required to fulfill a minimum export obligation, ensuring that production is aligned with global demand. This focus on exports enhances India’s presence in international electronics markets.

Who Can Apply for EHTP

The scheme is open to:

• Companies, partnership firms, and sole proprietorships registered in India.

• Units engaged in the manufacture of electronics hardware products.

• Entities willing to comply with the scheme’s export obligations and reporting requirements.

By targeting these entities, the EHTP Scheme ensures that both emerging startups and established manufacturers can benefit from its framework.

How to Apply for EHTP

Interested businesses can apply through STPI centers across India. The application process involves:

1. Registration – Submit the application to the nearest STPI office with detailed project and business information.

2. Project Approval – STPI reviews the application and grants approval for EHTP operations.

3. Compliance – Once operational, units must adhere to export obligations and maintain proper accounting as per the scheme’s regulations.

For more information, businesses can visit the official STPI website: https://www.stpi.in

Why EHTP is Important for India’s Electronics Sector

India is witnessing a growing demand for electronics, both domestically and internationally. The EHTP Scheme provides a structured framework that encourages investment, promotes exports, and supports innovation. Startups and manufacturers benefit from lower costs, easier market access, and better infrastructure, creating a fertile ground for the sector’s growth.

By incentivizing electronics hardware production, the scheme positions India as a competitive player in the global market, enhances employment opportunities, and fosters technological advancement.

The Electronics Hardware Technology Park Scheme is more than just a regulatory framework—it’s a strategic initiative to make India a hub for electronics innovation and exports. For startups and hardware manufacturers, it opens doors to growth, global competitiveness, and long-term sustainability in one of the world’s fastest-growing sectors.