Karnataka Plans Vision to Attract $150B in Electronics Mfg

• Karnataka aims to boost mobile and electronics manufacturing with $150B investment
• State explores a parallel scheme alongside Union incentives, including 25% capital subsidy
• Union program approved 17 projects worth ₹7,172 crore, creating 11,800 jobs

Recently, Karnataka Large and Medium Industries Minister M B Patil directed his officials to prepare a vision document that will aim at promoting the Manufacturing and Designing of Mobile and Electronics (M&E) Products in Karnataka, with a goal to attract Investments of $150 Billion.

Patil instructed his team to examine the Union Government's Electronics Manufacturing Schemes as well as similar Schemes from other States.

He met with a High Level Delegation, led by Pankaj Mohindroo, Chairman of the India Cellular and Electronics Association (ICEA) to discuss these programs.

He reiterated the fact that the Union Ministry of Electronics and Information Technology (IT) had recently released their Electronics Components Manufacturing Scheme in April 2015 and that the Government of Karnataka is currently evaluating the viability of implementing an Electronic Components Manufacturing Scheme that will run parallel to that of the Union Government.

“The proposal is still in the draft stage, and we welcome suggestions from ICEA”, he stated.

Also Read: JFE to Invest ₹15,750 Cr in JSW JV to Raise Steel Outputs

Mohindroo stated in addition to that, that the scheme of the Union prioritizes sub-assemblies with regard to the pastays such as Camera Modules, Displays; Bare Pasta; and Essential Manufacturing Equipment.

The scheme also links performance-based incentives to capital investments that will be made. Under this scheme, the capital subsidy offered may be equal to 25% of the capital investment made.

He further mentioned that ₹22,900 Crore, as already specified, was allocated by the Union Government for the Scheme; 17 individual proposals of investment have been approved with an overall investment value of ₹7,172 Crore submitted between 1 and 30 November 2022. The investments expected to create 11,800 direct jobs and generate cumulated sales of products to ₹65,000 Crore.

During the course of the meeting, Mr. Mohindroo confirmed that the Industries Department of the State of Karnataka was represented by senior officials, namely S Selvakumar, Principal Secretary; and Gunjan Krishna, Industries Commissioner, and thus reiterates the State's commitment to establishing an Electronics & Mobile Manufacturing Ecosystem in the State.