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

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

Priyanka.G.Dhammanagi

Assistant Director

Email: [email protected]