Electronic System Design & Manufacturing
Karnataka is the country’s preferred destination for investing in Electronic System Design and Manufacturing. With 85+ chip designing houses and ESDM skilled resources available, the state is well set to innovate in the sector. Major players like Wistron (Apple’s manufacturer), Intel, Qualcomm, Nvidia and many other global leaders benefit from this ready ecosystem
85+
Chip designing houses
10%
Contribution to the country’s electronic industrial output
40%
National share in Electronic Design
50%
National share in Electronic product companies
85+
Chip designing houses
10%
Contribution to the country’s electronic industrial output
40%
National share in Electronic Design
50%
National share in Electronic product companies
Table of contents
Incentives
Production Linked Incentive (PLI)) of 1% of annual turnover for 5 years (over and above Central Govt. scheme)
25% subsidy on land (upto 50 acres, and outside Bengaluru Urban & Rural)
20% subsidy on plant & machinery
100% reimbursement of land conversion fee
100% reimbursement of stamp duty
100% reimbursement of registration charges
INR 1 per unit Power tariff subsidy for 5 years
100% exemption from electricity duty
Additional incentives can be considered for marquee projects
New initiatives & opportunities
Highest subsidies in India
With the latest special ESDM incentives package announced in Sep-2020, Karnataka is offering the highest subsidies among Indian states. Subsidies to investors add up to 25-30% of the investment amount.
Electronics Manufacturing Clusters
Three Electronics dedicated manufacturing clusters planned at strategic locations, close to Bengaluru. Land also available near existing electronics manufacturing plants of global leading electronics manufacturers.
World-class common facilities
Common facilities such as testing, components library, technical expertise, in-house mentoring, upskilling, product design facility, design studio.
Industrial Clusters
Development of industrial / product cluster under “Industrial Cluster Development Programme” based on China model.
Chikkaballapura - Mobile Phone Components
Mysuru - ICB/PCB manufacturing unit
Growth drivers
Strong Domestic Demand for Electronics
Market for Electronics is growing at 25%+ CAGR in India. Karnataka is very well connected to the key demand centers both in India (esp. Central and South India).
Growing Importance in Global Supply Chain
Electronics exports from India, and Karnataka are growing at a fast pace. The state is home to 300+ export-oriented manufacturing units, being very well connected to export gateways.
Innovation Promotion
Karnataka is India’s leader in innovation. The state further promotes innovation through awards by grants. Best innovations will be selected by the screening committee comprising of both industry and academia representatives.
Skill development
Karnataka, being home to 85+ chip design houses and 400+ R&D centers, has the largest workforce at the intersection of advanced manufacturing (IoT, automation, Industry 4.0) and skilled craftsmanship. The state is also actively investing in skill development across all regions.
Sector Contact
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Special Incentives Scheme for ESDM Sector |
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