Electronics & Technology

INDIA SCENARIO

Amplifying Growth

The world’s fastest-growing industry, Electronics System Design and Manufacturing (ESDM) continues to transform lives, businesses, and economies across the globe. India is expected to become a $1 Tn digital economy by FY26. Currently, the electronics market in India is valued at $155 Bn with domestic production accounting for 65%.

Technology transitions such as the rollout of 5G networks and IoT are driving the accelerated adoption of electronics products. Initiatives such as ‘Digital India’ and ‘Smart City’ projects have raised the demand for IoT in the electronics devices market and will undoubtedly usher in a new era for electronic products.

100% FDI is allowed under the automatic route. In the case of defence electronics, FDI up to 49% is allowed through automatic route and beyond 49% requires government approval.
For further details, please refer FDI Policy, Government of India

At present, India’s domestic production has increased at a CAGR of 13% from $49 Bn in FY17 to $101 Bn in FY23.
The country's electronics export is expected to reach $120 Bn by FY26.
During May 2024, electronic goods exports were recorded at $2.97 Bn as compared to $2.41 Bn during May 2023, registering a growth of 22.97%.
India ranks 60 in Network Readiness Index 2023, a jump of 7 ranks from 67 in 2021.
96% reduction in data cost from INR 269 per GB in 2014 to INR 9.94 per GB in 2023.

2nd largest mobile manufacturer & internet users in the world
Over 2x increase in domestic production of electronics in last 6 years
19% CAGR in average monthly data traffic per user from 9.5 GB in FY18 to 19.5 GB in FY22

$0TnDigital Economy by FY26
$0BnIndian Electronics Market
$0BnFiscal incentives for ESDM & Allied Sectors

UTTAR PRADESH SCENARIO

UP is the largest exporter of Consumer Electronics in India
ESDM Clusters : Home to 45% of India’s smartphone manufacturing and 55% of mobile components
2 Greenfield ESDM Clusters : At Sector 24, Yamuna Expressway and at EcotechVI & VII, Greater Noida
OPPO, VIVO and Samsung operating plants in Greater Noida –account for 40% of India’s mobile manufacturing market

Largest Exporter of Consumer Electronics in India
0+ ESDM Companies presently operating in the state
0%Of total India, mobile component manufacturing units present operates from the State
0%Of the mobile manufactured in the country comes from the State

SECTOR HIGHLIGHTS

Click here to ViewESDM

DOMINANT INDUSTRY FORCES

KEY DEVELOPMENT IN THE INDUSTRY

3 Electronics Manufacturing Clusters focusing on mobile manufacturing, consumer durables, Telecom, IT hardware, Drone, medical electronics, defense electronics, Robotics, IoT etc. to be setup

Industrial electronics - Power electronics, LED lighting, CFL, energy meters etc.

Research, innovation and skill development support in emerging technology areas such as augmented Reality (AR), Virtual Reality (VR), drones, robotics, additive manufacturing, etc

Setting up of ESDM parks across the state in collaboration of Government/private agencies for Domestic/Foreign investors

Center of Excellences to be setup in collaboration with reputed academic institutions / industry associations / other Govt. / Private entity.

POLICIES & SCHEMES

Establish Uttar Pradesh as the preferred destination for electronics industry
Establish three (3) Electronics Manufacturing Clusters (EMC) in the state
Provide approx. 4 Lakh (0.4 million) employment opportunities within the state
Foster a culture of research, innovation and entrepreneurship

Policy Highlights

Capital Investment Subsidy Interest Subsidy @5% P.A. (on the rate of interest) to units with investment up to US$25 Mn, subject to conditions

Stamp Duty: 100% exemption of stamp duty for individual Electronics units; 100% exemption of stamp duty on first transaction; 50% exemption on second transaction shall be available for purchase/lease of land for EMCs/Electronics Parks

Land Subsidy Land Subsidy @25% on prevailing sector rates on purchase of land from state agencies in Madhyanchal and Paschimanchal regions. @50% on prevailing sector rates on purchase of land from state Agencies in Bundelkhand and Purvanchal regions

Land Subsidy Electricity Duty @50% exemption of Electricity Duty shall be provided for a maximum period of 10 years to all Electronics units 50% for units operating in Paschimanchal, 75% for units operating in Madhyanchal, and 100% for units operating in Purvanchal & Bundelkhand

Special Incentives

Additional capital subsidy for Anchor units from 1.5% to 5%

75% subsidy on 1st 200 acres of land along 30% subsidy on additional purchase of land

One time capital subsidy for setting up Effluent Treatment Plant (ETP)

Electricity duty exemption for 20 years

Dual power grid network to FAB units

Subsidy for setting up Common Facility Centers

KEY INVESTMENT OPPORTUNITIES

Future Development Opportunities

Value Chain Opportunity

Smartphones, laptops, televisions, infotainment systems, automobile communication, etc.
Hub for smartphone and other consumer electronics manufacturing mainly LCDs.

Import Substitution Opportunity

Opportunity to capture INR 5,100 crores (USD 723 million) worth of demand
Potential products include monitors, Sound recording medias, Storage Devices, Insulated Electric Conductors, Data Transmission/ reception apparatus, etc.

Export Opportunity

Market diversification and penetration opportunities for key products like Mobile phones, microphones and components in ASEAN countries, Japan and South Korea
Market diversification for key products like Computers and laptops in USA, Germany, Japan, UK.

MSME Units

Development of rental dormitories for work force in Industrial development Authorities by itself or on PPP mode
Development of rental facilities on Plug & Play model for ESDM investors by itself or on PPP mode.

Potential districts for planning future growth

Click Here ToKnow Your Approvals

	Service Name	Timeline (Days)	Category	Criteria
Board of Revenue Website Link	Change of Land Use	45	Pre-Establishment	In case applicant wants to change agriculture land to non-agriculture land
Department of Labor Website Link	Approval of plan and permission to construct/extend/or take into use any building as a factory under the Factories Act, 1948	30	Pre-Establishment	If factory having 40 or more workers without power. Or Factory having 20 or more workers with power.
	Registration and grant of license under The Factories Act, 1948	30	Pre-Establishment	If factory having 40 or more workers without power. Or Factory having 20 or more workers with power.
	Registration of principal employer's establishment under provision of The Contracts Labor (Regulation and Abolition) Act, 1970	30	Pre-Operation	Every establishment in which 50 or more workmen are employed
	Registration of establishment under the Inter State Migrant Workmen (RE/CS) Act, 1979	30	Pre-Operation	Every establishment in which 5 or more inter-state migrant workmen are employed.
	Registration under The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996	30	Pre-Operation	Govt - Unit any number and Pvt unit 10 and more employee and Investment 10 Lac and above any number of employees
Department of Stamp and Registration Website Link	Property Registration	1	Pre-Establishment	Applicant wants to register property
Pollution Control Board Website Link	Consent to Establish Under Air and Water Act (NOC)	120	Pre-Establishment	Mandatory
Pollution Control Board Website Link	Consolidated Form for Consent under Water Act 1974 Air Act 1981 and authorization under the Hazardous and Other Wastes (Management and Transboundary Movement) Rules 2016	120	Pre-Operation	Mandatory
Uttar Pradesh Fire Services Website Link	NOC from Fire Department (prior to commencement of construction activities) or Provisional	15	Pre-Establishment	Mandatory
Uttar Pradesh Power Corporation Limited Website Link	Power Connection	30	Pre-Operation	In case applicant require power connection
Forest and Wildlife Department Website Link	NOC for Tree Felling	15	Pre-Establishment	In case applicant wants to cut tree
Registrar Firms Societies and Chits Website Link	Registration of Partnership firms, Society	30	Pre-Establishment	In case applicant wants to register Partnership Firm or Society
Public Works Department Website Link	Road Cutting Permissions	7	Pre-Operation	In case applicant wants cut road
Directorate of Electrical Safety Website Link	Initial Inspection of High / Extra High Voltage Installation	4	Additional Service	Applicant requires power connection
Housing Dept./Awas Bandhu Website Link BIDA Website Link GNOIDA Website Link GIDA Website Link NOIDA Website Link YEIDA Website Link UPEIDA Website Link UPSIDA Website Link	Building Plan Approval	15	Pre-Establishment	In case applicant wants to construct building
Urban Department Website Link	Water Connection of Industrial Water		Pre-Operation	In case applicant wants a water connection

Sector

Shri. Ritesh Saxena