UP is playing a major role in bridging the demand-supply gap in the Indian electronics sector.
The Electronics Manufacturing Policy 2014 has been approved by the Uttar Pradesh cabinet in order to attract further investments in the electronics sector. To give a boost to the electronics manufacturing units the government has initiated a number of fiscal and non-fiscal incentives which will also benefit the expansion of the existing units.
The policy looks forward to establishing Electronic Manufacturing Clusters (EMC) in the state of UP and an upcoming semiconductor fabrication unit will also be capitalised for the Yamuna Expressway project. The investment ahs been expected around Rs 350,000 million. The plant is being jointly established by JP Associates, IBM and Tower Semiconductor Limited, Israel. The state cabinet, which approved the policy, held a meeting chaired by chief minister Akhilesh Yadav.
The policy has some key points which include 15 per cent capital subsidy, 5 per cent interest subsidy for 7 years, 100 per cent exemption on stamp duty, 100 per cent tax reimbursement on VAT or CST for 10 years and so on. A special incentive package will also be considered under this policy for those units which invest over Rs 2,000 million in this sector. Besides, this policy also supports the 2012 National Policy on Electronics, to give a enhance to development of infrastructure facilities in UP.
This policy will help the state government to promote a number of industries like manufacturing of mobile devices, telecom products, consumer electronics, power electronics, IT system and hardware along with other components like transistors, resistors, switches and more. The current Indian market demand in the electronics industry is around $75.6 billion and these numbers are expected to touch 400 billion by 2020. To bridge the demand-supply gap, the state will try to emerge as a major hub for electronics manufacturing with this policy’s help.