India’s Electronics Hardware Technology Park (EHTP) ecosystem expanded to 79 units in 2025–26 from 70 two years earlier. Exports from these 100% export-oriented units crossed the Rs 11,150 crore mark—estimated at Rs 11,200 crore in FY26—underscoring continued growth in the country’s export-focused electronics manufacturing base, the government told Lok Sabha earlier this week.

The data show exports of Rs 11,442.66 crore in FY25 and Rs 9,677.98 crore in FY24, with the unit count rising from 73 in FY25 to 79 in FY26, even as FY26 exports moderated slightly from the FY25 peak.

Scheme design: No direct fund allocation, but strong fiscal incentives

The EHTP Scheme is a 100 per cent export-oriented scheme aimed at promoting electronic hardware exports from India, with the government clarifying that there is no direct fund allocation under the scheme.

Instead, eligible units receive incentives and fiscal benefits under the Foreign Trade Policy 2023, including duty-free import or procurement of capital goods, raw materials, components and other permitted goods required for export production, along with permission for Domestic Tariff Area (DTA) sales and simplified customs procedures.

This structure is designed to lower input costs and ease compliance for export-focused hardware manufacturers while keeping the scheme fiscally light for the exchequer.

Karnataka leads with 34 units and over Rs 8,300 crore in exports

Karnataka continued to account for the largest share of EHTP activity, with 34 units in FY26, up from 29 in FY24, and exports standing at Rs 8,328.98 crore. Maharashtra followed with six units and exports of Rs 1,165.54 crore, while Uttar Pradesh had seven units generating exports of Rs 900.41 crore.

Tamil Nadu also increased its EHTP units from 12 to 14 during the period, with exports rising to Rs 314.62 crore in FY26 from Rs 195.10 crore in FY25. The state-wise breakdown highlights Karnataka’s dominance in the EHTP map, with the state alone contributing the bulk of the Rs 11,150 crore-plus export tally.

Process reforms: automation, blanket import permissions and outreach

To expand participation and make the scheme easier to use, the government said statutory services provided by Software Technology Parks of India (STPI) have been automated through a digital platform, including approvals and final intimations.

Import procedures have also been simplified, with the earlier case-to-case permission system replaced by blanket import permissions for the financial year concerned. The government added that regular stakeholder consultations, awareness programmes, industry interactions and participation in trade events are being undertaken to encourage new investment and participation under the scheme.

The latest data show that while EHTP exports moderated from their FY25 level, the number of units continued to expand, with the government focusing on simplifying procedures and improving access to the scheme to support further participation.

With exports crossing Rs 11,150 crore and the unit base widening to 79, the EHTP framework remains a key pillar of India’s strategy to deepen electronics hardware manufacturing for global markets, even as policymakers work to convert the higher unit count into stronger export realisation in the coming years.