UP, Gujarat rush to take part(s) in electronics race
Uttar Pradesh and Gujarat are working on incentive schemes to woo large-scale electronic component manufacturers to establish factories in their states. They join a race among several states—Tamil Nadu was among the first off the blocks--to attract investments after the Centre unveiled a Rs 23,000 crore package aimed at encouraging component manufacturers to invest in the country and strengthen its manufacturing ecosystem.The Tamil Nadu programme unveiled last week aims to match the sops offered under the Centre's recently announced Electronics Component Manufacturing Scheme (ECMS).Gujarat is emerging as a hub for electronics and semiconductors with chip manufacturing and assembly plants by the likes of Micron, CG Power and Tata Electronics in various phases of development in locations such as Dholera and Sanand.
'We have submitted a draft policy for incentivising electronic component manufacturing in Gujarat for final consideration,' said Mona Khandhar, Gujarat's principal secretary, science and technology. 'Finer details can be divulged only once the state government approves the policy.'
Uttar Pradesh is also chalking out a plan to capitalise on the advantage that it has in the space with Noida being an important upcoming hub for
electronics manufacturing
.
The state 'is working on a draft of the policy which should come out in a few weeks,' said a person aware of the development. 'As it is in the drafting stage, more specifics cannot be provided at the moment.'
Karnataka already includes electronic component manufacturing as a key element of its existing Electronics System Design and Manufacturing (ESDM) policy.
'We might make some tweaks and additions to the policy in light of the latest developments but it is a competitive policy as it stands,' said Gunjan Krishna, Karnataka commissioner for industrial development. 'The subject matter gets covered even by the new industrial policy.'
Several other states are studying the landscape and contemplating their own policies.
'Following Tamil Nadu's swift rollout of ECMS-specific support, a competitive momentum has emerged among states to boost electronics manufacturing within their borders,' said Ashok Chandak, president of the India Electronics and
Semiconductor
Association (IESA). 'In addition to early movers like Tamil Nadu, Gujarat, and Uttar Pradesh, states such as Madhya Pradesh, Odisha, Chhattisgarh, Maharashtra, and Haryana are also actively positioning themselves to attract investments and secure a place in India's expanding electronics value chain.'
amil Nadu, already strong in electronics manufacturing, has set the benchmark with its policy. It announced matching grants under the Tamil Nadu Electronics Components Manufacturing Scheme on April 30 for those that qualify under the ECMS.
'Tamil Nadu coming out with such a policy really puts pressure on the rest of us because they have a thriving ecosystem that they offer such players already,' said an official from a neighbouring state. 'Our coffers do not allow us to give incentives like this so we will have to work doubly hard to get people to invest in our state.'
The Centre expects its policy to attract investment of Rs 59,350 crore, result in production of Rs 4,56,500 crore and generate additional direct employment of 91,600 persons and many indirect jobs during its tenure.
This six-year scheme will support the successful smartphone production-linked incentive (PLI) scheme by allowing higher value addition and also back a similar programme for semiconductors.
India's value addition in electronics manufacturing is currently about 20%. The aim is to double this in the next five years and be at par with global leaders.
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