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Electronic System Design and Manufacturing
Karnataka is the country’s preferred destination for investing in ESDM, it is home to 400+ MNCs with global R&D Centres. With 85+ chip designing houses, 55% of the country’s IoT startups based in Bengaluru and ESDM skilled resources available, the state is well set to innovate in the sector. Further, Karnataka has over 2,000 electronics start-ups, further showcasing its commitment to innovation and technological advancement in the sector. Major players like Wistron (Apple’s manufacturer), Intel, Qualcomm, Nvidia and many other global leaders benefit from this ready ecosystem.
100+
fabless chip design
houses, largest in India
10%
contribution to National electronics output
40%
electronic design
50%
National share in Electronic product companies
Sector Incentives and Policy
ESDM Special Package
| Particulars | Incentives |
|---|---|
| Capital Investment Subsidy | 25% subsidy on land1 + 20% subsidy on plant & machinery |
| Production Linked Incentive (PLI) | 1% of annual turnover for 5 years |
| Stamp Duty | 100% reimbursement |
| Land Conversion Fee | 100% reimbursement |
| Registration charges | 100% reimbursement |
| Power Tariff Subsidy2 | INR 1 per unit for 5 years |
| Electricity Duty | 100% exemption for 5 years |
- Subsidy only on land parcels outside Bengaluru Urban & Rural
- Commercial production marks the start date/period
NOTE: No upper limits on most individual elements, unlike other states; Subsidies can be availed up to 100% of value of fixed assets
New initiatives & opportunities
North cluster
India’s first private Aerospace SEZ with ~250 Acres area situated in Belagavi for A&D manufacturing and assembly
Central cluster
Aerospace research and innovation Centre collocated with IISc at Chitradurga. Flying training school at Davangere
South cluster
Hi-tech Aerospace and Defence park with ~1000 Acre area situated in Devanahalli, Bangalore for access to vast A&D ecosystem in Bangalore
MRO
World class Maintenance, Repair and Operations (MRO) facility planned in Bangalore, Mysuru to leverage recently announced tax rationalization
Initiatives and Growth Drivers
Special ESDM Incentives Package
Announced in Sep-2020, Karnataka is offering one of the highest subsidies among Indian states. Subsidies to investors add up to 25-30% of the investment amount.
Common facilities
Such as testing, components library, technical expertise, in-house mentoring, upskilling, product design facility, design studio are available in the state.
Dedicated Electronics Manufacturing Cluster
Karnataka in collaboration with the Government of India is focused on developing ESDM clusters in 3 locations, namely, Kochanahalli – Mysuru, Kotur - Belur – Dharawad, Adinarayana Hosahalli – Bengaluru Rural.
Sector Champions
Soumitra Battacharya
Bosch Group in India
Managing Director
Bosch Limited, Bosch India
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Kamal Bali
President & Managing Director
Volvo Group India
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Sector Contact
Email:[email protected]
Phone:9060940380
