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Electronic System Design & Manufacturing

Industrial Promotion

Over the last couple of decades India has been the epicenter of consumer demand fuelled by a phenomenal GDP growth. While demand increased across all sectors, demand for high technology products, specifically electronic products has registered significant growth and going by current estimates, the demand for electronics hardware in the country is projected to increase from USD 45 billion in 2009 to USD400 billion by 2020 (Source: Task Force Report).

The estimated production will reach USD 104 billion by the year 2020, creating a gap of USD 296 billion in demand and production. This creates a unique opportunity for companies in the ESDM (Electronic System Design & Manufacturing) sector to look at India as their next destination to cater to the domestic Indian demand as well as act as an exports hub.

Accordingly, the Government has initiated several initiatives for the development of electronics sector in the country. The Government has recently approved National Policy on Electronics (NPE). One of the important objectives of the NPE is to achieve a turnover of about USD 400 Billion by 2020 involving investment of about USD 100 Billion and employment to around 28 million by 2020. This interalia, includes achieving a turnover of USD 55 Billion of chip design and embedded software industry, USD 80 Billion of exports in the sector. Moreover, the policy also proposes setting up of over 200 Electronic Manufacturing Clusters. Another important objective of the policy is to significantly upscale high-end human resource creation to 2500 PhDs annually by 2020 in the sector.

As part of the efforts to promote the electronics sector, we are setting up a semiconductor wafer fab in the country. India has become the hub for semiconductor design with nearly 2000 chips being designed per year and more than 20, 000 engineers are working in various aspects of chip design and verification. Annually India is generating nearly USD 2 Billion in revenues for the chip design services. This provides an enabling environment for the semiconductor wafer fab which will come up in India.

Several other policy initiatives have been approved in last few months. These include providing very attractive financial investment in electronics manufacturing and providing preference to domestically manufactured electronic goods in all Government procurement as well as all those electronic goods whose use has security implications for the country. The financial incentives are available not only for new units but also for units relocating from abroad. Besides, when we speak of electronics, apart from covering electronic hardware products relating to IT and office automation, telecom, consumer electronics, electronic components, etc., we cover a wide range of products relating to verticals like solar photovoltaic, automotive electronics, medical electronics, avionics, LED etc. To address the issue of infrastructure, a scheme for Electronics Manufacturing Cluster provides 50% of the cost of upgrading infrastructure and logistics as grant in aid from Government.

India has a vast pool of innovative and talented human resource. Our human resource is our strength which we offer to an investor from abroad. We produce over 200,000 engineers every year. We also propose to enhance the number of post graduates and PhDs in Electronics so that abundant manpower is available for Electronics industry to grow and flourish.

List of Notified Brownfield Electronics Manufacturing Clusters in India for M–SIPS Scheme
(As on 19.06.2014)

S.No. State Brownfield Electronics Manufacturing Cluster for MSIPS, Scheme Cluster-ID Reference Notification date
1 Andhra Pradesh Districts of Hyderabad, Ranga Reddy & Medak, AP-1 26th June 2013
2 Districts of Nellore & Chitoor, AP-2
3 Vishakhapatnam, District AP-3
4 Krishna, District AP-4
5 Gujarat Ahmadabad-District GJ-1 5th June 2014
6 Gandhi Nagar-District GJ-2
7 Vadodara, District GJ-3
8 Haryana District Gurgoan HR-1 23rd December 2013
9 Bawal, Tehsil HR-2 19th February 2014
10 Dharuhera, Sub Tehsil HR-3
11 Himachal Pradesh Block Kandaghat HP-1 23rd December 2013
12 Block & Urban body area, Solan HP-2
13 Block, Dharampur HP-3
14 Block, Nalagarh HP-4
15 Urban body area Nalagarh, HP-5
16 Urban body area Baddi HP-6
17 Urban body area Parwanoo HP-7
18 Karnataka Districts of Bengaluru, Bengaluru Rural, & Tumkur KK-1 21st March 2013
19 Mysore, District KK-2
20 Kerala District Thiruvananthapuram KL-1 23rd December 2013
21 District Alappuzha, KL-2
22 Kannur- District (Includes Eramom, IDP ANDOR Phase I, Phase II, Mini Industrial Estate, Mini Industrial Estate (SIDCO) Ballypattam, Taliparamba, Kinfra Small Industries Park, Thalassery, Palayad Industrial areas) KL-3 19th June 2014
23 Madhya Pradesh Districts of Dewas, Indore, & Dhar MP-1 21st March 2013
24 Bhopal, District MP-2
25 Raisen, District MP-3 19th February 2014
26 Maharashtra District Pune MH-1 23rd December 2013
27 Mumbai
(includes Mumbai City District and Mumbai Suburban District)
28 Navi Mumbai
( Includes Navi Mumbai Municipal limits area)
29 Nagpur District MH-4 5th June 2014
30 Nasik, District MH-5
31 Aurangabad, District MH-6
32 Thane, District MH-7
33 Puducherry Union Territory of Puducherry PD-1 13th May 2013
34 Punjab Mohali-Greater Mohali Development Authority areas PB-1 13th May 2013
35 Rajasthan District Jaipur RJ-1 23rd December 2013
36 Ajmer (includes Gegal, Makhupura TA, MTC-Ajmer, Parbatpura and Parbatpura Makhupura Ext Industrial areas) RJ-2 19th June 2014
37 Bhiwadi (Urban Improvement Trust (UIT) area ) ( includes Bhiwadi, Kahrani, Chopanki, Khuskhera, , Tapukara, Sarekhurd, Pathredi, Tijara Road industrial areas) RJ-3
38 Neemrana block ( Includes Industrial areas of Neemrana Ph-I-III , EPIP Neemrana and Manjara Path (Japanese Zone) industrial areas RJ-4
39 Kota District ( includes Nayapura, Electronic Complex Kota, P R Bundi, Baran Ind. Area, Chambal Ind Area Kota) RJ-5
40 Udaipur District (Includes Partap Nagar, Gukher, Mewar Industrial Areas, Jogiwara , Fatehpura, Kaladvas, Hiranmajri Industrial areas) RJ-6
41 Tamil Nadu Kancheepuram District TN-1 26th June 2013
42 Uttarakhand Haridawar district (Includes Mustafababad, Dhanpura, Padartha , Land Hora , Pipli , Bhadrabad , IIE- Haridawar & industrial Estates in Roorkee Block Industrial areas ) UK-1 19th June 2014
43 Udham Singh Nagar, District (Rudrapur Block, sitarganj Tehsil, and Kashipur Tehsil Industrial Areal ) UK-2
44 Uttar Pradesh Noida - Greater Noida, Development Authority areas UP-1 21st March 2013
45 Ghaziabad, District UP-2 5th June 2014
46 West Bengal Kolkata, District WB-1 13th May 2013
47 Haldia, Development Authority area WB-2
48 Kharagpur,(Kharagpur area coming under Midnapore Kharagpur Development Authority) WB-3
49 Durgapur,(Durgapur area coming Under Asansol Durgapur Development Authority) WB-4
50 Siliguri,(Siliguri area coming under Siliguri-Jalpaiguri Development Authority ) WB-5
51 Howrah, District WB-6 26th June 2013









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Page last updated on July 30, 2014
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