Latest news with #ElectronicsManufacturingClusters
Time of India
6 days ago
- Business
- Time of India
Uttar Pradesh is now India's manufacturing backbone—And the numbers prove it
Uttar Pradesh, India's most populous state, has over the years emerged as a hub of the manufacturing sector, thanks to its well-equipped infrastructure and strong initiatives for attracting investments. From hitting an economic slump due to multiple factors, it has now become the preferred destination for enterprises across segments such as smartphone production, textiles, and auto components. This essentially makes it the backbone of the country's economy. Dial M for more! UP leads smartphone manufacturing bloc in India The state has set quite a high benchmark when it comes to mobile manufacturing. It accounts for 55% of the country's smartphone production and 50% of its mobile component manufacturing. This gives a clear edge over a state like Karnataka, which accounted for nearly 1% of India's smartphone production a few years ago Home to 14 fully functional Special Economic Zones (SEZ's) and three Electronics Manufacturing Clusters (EMCs), the state is now taking long strides in India's economic development. EMCs provide enterprises easy access to ready-to-use factories and warehouses, making it simpler for them to find a foothold in the state. Similarly, companies operating in SEZs enjoy benefits such as tax holidays and benefits, which makes it possible for them to navigate the cesspool of (unnecessary) bureaucracy. These initiatives have boosted investor confidence and prompted international players to bet big on the state. Vivo, for instance, has planned to invest over Rs 7,000 crore in Uttar Pradesh and set up a massive manufacturing plant in Greater Noida. Global players such as Oppo and Samsung too have invested in the state, creating a vibrant economic ecosystem. A leader in textiles Uttar Pradesh is also the nerve centre of India's textiles and apparel segment, accounting for nearly 13% of its fabric output. This puts it in fourth position and ahead of states such as Andhra Pradesh (~5%) and West Bengal (~6%). Textile enterprises based in UP enjoy various benefits under the UP Textile & Garmenting Policy (2022), which has further rejuvenated this segment. These include 100% electricity duty exemption for 10 years, 25% subsidy on capital machinery, and 100% stamp duty exemption. These initiatives have encouraged enterprises to make Uttar Pradesh their base. In 2024 alone, 123 new textile companies started functioning in Uttar Pradesh. This brought in a total investment of ₹2,492 crore. Some of these enterprises include GESL Spinners Pvt Ltd (Rs 227 crore) and M-S Interweaves Polytex Pvt Ltd (Rs 150 crore). Additionally, the state has 12 flourishing textile parks,which are a boon for MSMEs as they help them enjoy access to shared facilities like design centres and training facilities. These centres also have also created jobs. The PM MITRA Mega Textile Park, for instance, alone has created 100,000 employment opportunities so far. This gives textile enterprises an opportunity to be part of a vibrant ecosystem where opportunities and collaborations are around the corner. A force in auto components segment Uttar Pradesh's dominance over the manufacturing sector is not limited to the smartphone and textile segments alone. It also excels in manufacturing automotive and auto components. The EV Manufacturing & Mobility Policy 2022 aims to create over 1 million jobs through an investment of ₹30,000–50,000 crore. It also makes life easier for enterprises through incentives like 20-30% capital exemption, 100% waiver of road tax, and subsidies on charging stations. Not surprisingly, this has transformed UP into the home of major players in the auto components segment. Last year Automotive Manufacturers Pvt. Ltd. (AMPL)-- a company that has been part of landscape for 70 years, set up a new 3S facility in Varanasi. Similarly, Servotech Power Systems Ltd has invested around Rs 300 crore in establishing an EV Charger manufacturing plant. The government is also taking steps to further rejuvenate its already thriving infrastructure. Not too long ago, Uttar Pradesh State Industrial Development Authority (UPSIDA) allocated Rs 456 crore to strengthen civil and electrical infrastructure across 93 industrial areas. Additionally, the body also allotted 113 plots across various industrial zones. They attracted an investment of Rs 700 crore and are projected to create over 4000 jobs. Given this, UP is set to remain the go-to place for those hoping to flourish in the manufacturing sector.
Time of India
6 days ago
- Business
- Time of India
Uttar Pradesh: India's emerging silicon heartland for electronics and semiconductors
Uttar Pradesh has over the years, emerged as the nerve centre of the electronics sector thanks to its business-friendly policies and stellar infrastructure. From facing an economic slowdown for multiple reasons, India's most populous state has now transformed into the go-to destination for companies across segments such as mobile and communication devices and consumer electronics. This has essentially established Uttar Pradesh as the driving force of the country's economy. UP continues to 'charge' the mobile and communication devices segment Uttar Pradesh leads the way when it comes to mobile phone manufacturing. In 2024, the state accounted for 55% of the country's mobile production. This means it leads over states such as Andhra Pradesh(~10%) and Karnataka (~1%) Home to 14 fully functional Special Economic Zones (SEZ's) and three Electronics Manufacturing Clusters (EMCs), Uttar Pradesh is the catalyst behind the country's economic growth. EMCs ensure that companies have direct access to state-of-the-art factories and warehouses, which helps them stay ahead of the competition. Similarly, SEZs have proved to be a game-changer for the state and the country's economy. Companies based in these specialised areas enjoy tax holidays, which shield them from the cumbersome and unnecessary bureaucratic procedures. These initiatives have fostered a favorable investment climate, encouraging key international players to bet big on Uttar Pradesh. In 2020, Samsung decided to invest ₹4,825 crore to relocate its mobile and IT display manufacturing operations from China to Noida. Similarly, Vivo is set to invest Rs 7,000 crore in Uttar Pradesh and establish a well-equipped manufacturing plant in Greater Noida. Global giants Oppo, Haier and Lava too have a strong presence in the state, which has further proved to be a boon for the segment. UP powers the consumer electronics segment Uttar Pradesh has also grown by leaps and bounds in the consumer electronics (durables) segment, accounting for nearly 15% of the country's exports. This puts it ahead of states such as West Bengal (~5%) and Telangana (~2%), and Consumer electronics firms enjoy several benefits under the Uttar Pradesh Electronics Manufacturing Policy 2020, which was amended in 2022. They include 15% capital subsidy on investments up to Rs 1,000 crore, 100% exemption on stamp duty, and up to 100% exemption on electricity duty for a period of 10 years. These initiatives have further rejuvenated the already flourishing segment, encouraging enterprises to set up shop in Uttar Pradesh. Nearly 20 firms have expanded their operations in the state over the last five years, bringing in a total investment of ₹21,642 crore. These include global leaders such as Haier (Rs 584.5 crore) and Oppo (Rs 4000 crore). Additionally, the state's robust educational infrastructure– equipped with 71 universities and over 4,300 colleges– serves as a big asset for the consumer electronics sector by providing a highly-trained workforce. The future looks bright The state is set to further consolidate its standing as the the hub of the electronics sector through the UP Semiconductor Policy 2024. It aims to transform UP into a haven for enterprises through benefits such as up to 25% capital subsidy and land rebates. Uttar Pradesh is also set to welcome the HCL–Foxconn OSAT Plant in Jewar by 2027. Projected to produce 36 million display driver chips/month, this game-changing initiative is likely to create over 2,000 direct jobs and generate Rs 1000 crore a year. In other words, Uttar Pradesh is on course to becoming a powerhouse in this segment in the next couple of years. This exponential growth essentially means that UP is in prime position to further consolidate its standing as the preferred destination for enterprises hoping to thrive in the electronics sector. .
Mint
03-06-2025
- Business
- Mint
Think ahead: India's electronics manufacturing must go up the value curve
India's smartphone exports stood at $10.96 billion in 2022-23 and surged to $24.14 billion in 2024-25, a striking compound annual growth rate (CAGR) of 48.4%. Long reliant on imports and peripheral to global value chains, India's electronics manufacturing is becoming a pillar for job creation, export growth and technological advancement. However, India must temper its excitement about labour-led electronics manufacturing growth and double down on boosting domestic value addition. The 'China plus one' strategy, accelerated by the pandemic and heightened US–China tensions, has led to supply chain diversification by global manufacturers. Among alternatives, India stands out thanks to its vast domestic market, improving infrastructure and large labour supply. India is the world's second-largest mobile phone making hub now, a status that reflects both expanding production and rising quality standards. It is also well placed to further capitalize on the 'friend-shoring' trend born of geopolitics. Also read: Centre mulls maximising electronics earnings amid uncertainty over Apple exports, tariff haze At the heart of our manufacturing drive is the government's production-linked incentive (PLI) scheme, which has attracted significant investments from global players. Apple, for instance, now assembles 10-12% of all iPhones in India. In 2024-25, iPhone exports amounted to $17.4 billion. Samsung runs the world's largest mobile phone factory in Noida, catering to both domestic and international markets. Beyond mobile phones, India's Semiconductor Mission, backed by a $10 billion outlay, aims to build a full-stack chip ecosystem, from fabrication units to assembly, testing, marking and packaging facilities, apart from design capabilities. This is critical given that semiconductors are India's second-largest import item after crude oil. Complementing these efforts is the Electronics Manufacturing Clusters scheme, which provides plug-and-play infrastructure, land and logistical support to manufacturers. India is also gaining momentum in display manufacturing, printed circuit board production, camera modules and power electronics. We must also seize the global data centre boom—not just as a digital infrastructure opportunity, but as a strategic lever for manufacturing. Surging worldwide demand for hyperscale data centres and AI infrastructure is rapidly enlarging markets for servers, cooling systems, power equipment and networking components—areas in which India can become globally competitive. By aligning industrial policy, export incentives and skilling programmes with the needs of global data centre operators, India can attract investment and position itself as a hardware manufacturing hub for digital infrastructure. A dual strategy of hosting global data and building the infrastructure that powers it could amplify India's economic prospects and influence. Electronics manufacturing is labour-intensive and could, over the next five years, generate over 1 million direct jobs, particularly in Tier 2 and Tier 3 cities. As domestic value chains deepen, micro, small and medium enterprises (MSMEs) could be integrated into global production networks. This would not only spread the benefits of industrial growth, but also help formalize and upgrade India's vast informal manufacturing base. Also read: Why India's electronics sector is least at risk from Trump's reciprocal tariff scrutiny Increasing value addition is the other challenge. In smartphone manufacturing, it has improved from 2% in 2014 to 15-16% in 2024, but still trails China's. Premium smartphones exported from India rely on 90-95% imported components. According to the Global Trade Research Institute, for every $1,000 worth of iPhones that India exports, we capture just $30—compared to $450 by the US and $150 by Taiwan. India ranks 44th on Harvard University's Economic Complexity Index, a measure of production sophistication, while China is 16th and Taiwan is 4th. Vietnam, ranked 48th, saw a tenfold surge in its manufacturing exports from 2000 to 2023. Yet, its domestic value addition has plateaued since 2010, offering us a cautionary example. Unlike China and Vietnam, India has not reached the 'Lewis Turning Point' at which developing economies exhaust their labour surpluses and wages begin to rise swiftly. This reflects structural challenges in our labour market. Until India reaches that point, it is easy to be misled by the apparent advantage of labour availability, without recognizing the pressing need to focus on value addition. For enduring economic growth, India must move up the production value chain and not remain merely a destination for low-value product assembly. We must invest in precision tooling, high-end materials and critical components manufacturing. Programmes like the Electronics Components Manufacturing Scheme are important steps, but both their scale and execution speed must increase significantly. We must also sharpen our focus on skilling and sustainability. Deeper investments in technical education and industry-academia collaboration are vital. While we must adopt globally recognized sustainability practices, our policies on issues like e-waste responsibility must be business-enabling and grounded in operational realities. Also read: Budget smartphones sell like hot cakes in tepid market India's electronics manufacturing journey is no longer an experiment—it is now a strategic economic growth pivot. If this momentum continues, the sector could contribute over $300 billion in annual output by 2030, create millions of jobs, boost exports and significantly strengthen India's technological and economic sovereignty. The author is a strategy and public policy professional. His X handle is @prasannakarthik
Time of India
01-05-2025
- Business
- Time of India
Cygni commissions gigafactory in Hyd
Hyderabad: Independent energy story solutions player Cygni Energy , which was incubated at IIT Madras and is headquartered in Hyderabad, has commissioned the first phase of its automated battery energy storage system (BESS) gigafactory at the E-Mobility Valley at the Electronics Manufacturing Clusters (EMC) at Maheshwaram in Hyderabad. The first phase of the gigafactory has been set up at an investment of 100 crore and has a capacity to produce 4.8GWh of high-capacity battery packs for electric vehicles and energy storage systems capacity. The company plans to double this capacity by 2027 at an additional investment of 150 crore in the second phase. You Can Also Check: Hyderabad AQI | Weather in Hyderabad | Bank Holidays in Hyderabad | Public Holidays in Hyderabad Cygni founder & CEO Venkat Rajaraman said, "In Phase II, we are scaling our gigafactory's capacity to 10.8 GWh in the existing facility itself. With a total investment of 250 crore across two phases, this will result in direct and indirect job creation of over 1,000 jobs in the next 24 months." He said as part of this expansion, the company will be adding three additional automated 2 GWh cell-to-pack manufacturing lines and container integration facilities to the existing lines to meet the rising demand for stationary and e-mobility storage applications. The 1.6 lakh sq ft phase-1 facility has come up on a five-acre parcel of land and the battery packs produced here will cater to large grid-scale stationary storage projects and independent power producers. The first phase of the gigafactory has been set up at an investment of 100 crore and can produce 4.8GWh of high-capacity battery packs
