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    Self-Reliance Could Definitely Transform India To The “Golden Bird” Once Again.

    With the Pandemic affecting almost all niches of society, things have changed and have now started adapting to different methodologies. The world is on the track to an optimized work process. Covid-19 is turning into an unfortunate opportunity for the Manufacturing Industry. India is now transforming into a good cluster for electronic manufacturing. India instituted the largest COVID-19 induced lockdown in the world to battle the pandemic and flatten the curve. In several months of social distancing and isolation, people, businesses, and national and state governments have deployed technology to get an edge over the pandemic.

    With implementing schemes like Production Linked Incentive ( PLI)), Schemes for Promotion of Manufacturing of Components and Semiconductors (SPECs) and Electronic Manufacturing Cluster Scheme (EMC2.0), The electronics manufacturing industry currently provides employment for over 20,00,000 people in India, of which mobile manufacturing alone accounts for over 6,00,000 jobs. To further facilitate large-scale manufacturing, development of a supply chain ecosystem, and building of new manufacturing clusters in the country, each electronic manufacturing scheme has been carefully constructed to incentivize the electronics manufacturing industry. Domestic manufacturing of electronic gadgets, including mobile phones and components, televisions, and laptops, is expected to contribute one-fifth to India’s economy by 2025.

    The government plans to extend the production-linked incentive (PLI) scheme to domestic manufacturing of laptops and tablets, following the success of a scheme to locally produce mobile phones and their components. Sixteen global and domestic mobile and electronic component makers including Samsung, Foxconn and Bhagwati Products—the maker of Micromax phones will benefit from the Centre’s PLI scheme that was launched in April to boost local manufacturing. The government will give more than 4-6% incentive to eligible electronic companies on incremental sales of manufactured goods, mobile phones and electronic components such as printed circuit boards and sensors, among others for five years.

    As per the reports by ELCINA (Electronic Industries Association of India), the manufacturing sector may touch more than $152 Billion by 2025. Electronics Manufacturing Services has now expanded to include research & development, supply chain management, global distribution, logistics, customer support and even warranty repairs. There has been a complete transformation of the role of EMS in the industry globally. India had set a target of 100 billion dollars of exports of mobiles alone by 2025 which was possible with the support of the PLI scheme. This would mean that India would serve 25 per cent of the global mobile market which was estimated to be valued at 415 billion dollars in 2025. Similar support of 4-5 per cent was required for non-mobile EMS exports which would enable India to make a mark in the world market.

    The big challenge that India faces in electronics manufacturing is the lack of a world-class semiconductor fabricating unit (FAB). It’s time the government either gets global players to invest in a FAB in India or start the work to build a domestic version.  What India lacks today is a sound infrastructure in all areas of production, convenient logistic conditions and sufficient energy supply for manufacturing. The demand for increasing GDP share to manufacturing is the need of the hour. Long-term debt owed to infrastructure has become a soft underbelly of India’s economy and weakened its development potential. In the areas of transportation, the road conditions in most areas are very poor and cannot meet logistics needs at all. As the seventh largest area in the world, India has only three major ports. Mumbai, as India’s largest port city, has a population of more than 12 million, but has only one north-south transportation artery. The Country, today is on a track for large scale development and infrastructure elevation. Each and every Indian State today has a very good share to the manufacturing cluster and is highly evolving with new methodologies, schemes, incentives and technologies. Let us have a look at the sound and stable infrastructure developed or improving in different states:

    Jammu & Kashmir

    The State after the abrogation of Article 370 has introduced the new Himayat Programme for creating resilient workforce thereby promoting manufacturing. Himayat is an unprecedented initiative for those youngsters who have had to quit studies due to one reason or the other. It provides them a second chance to realize their dreams and earn a livelihood. The state is set to step into the sectors of E-commerce, Hotels, Transport, Information and Communication Technology, Finance and Insurance, Real Estate, IT enabled Services, Health and Social Services, Manufacturing, Horticulture, Education, Automobile and Packaged Food Industry. Himayat can provide adequate and appropriate support for all future candidates, especially those who have been affected by global pandemic and belong to vulnerable section of the society. Himayat Mission Management Unit JKRLM signed MoUs with Instrumentation Automation Surveillance & Communication Sector Skill Council of India and Electronics Sector Skills Council of India.

    Himachal Pradesh

    The Land of Gods is nowhere less in terms of rapid advancements and boundless opportunities. As part of the growing manufacturing niche in the country, the Himachal Pradesh government has signed a memorandum of understanding (MoU) worth ₹110 crore with Micro-Tech New Technologies Private Ltd for setting up a manufacturing unit of thermometers, online/offline UPS, high capacity invertors, oxymeters and other electrical products in Solan district’s Baddi area. The unit will be completed by March, 2021 to provide direct employment to about 450 people.

    Haryana

    Haryana has always supported the growth of the country in terms of generating resources, agriculture, manpower etc. The state at present understands and accepts the need of the technology sphere and is coming up with so many reliable opportunities. Considering this, the Haryana Cabinet has approved the Haryana Enterprises and Employment Policy 2020. The policy aims to establish the state as a competitive and favoured investment destination. The cabinet approved the new policy, which will come into effect from this year, an official statement said. The objective of the policy is to attract investment of over Rs 1 lakh crore and generate 5 lakh jobs in the state.

    Rajasthan

    Rajasthan is rich in the vast landscape and infrastructure facilities it offers. This time the state has put good efforts for the e-automotive sector and as a result, Okaya Power, one of the largest manufacturers and suppliers of EV charging stations, lithium-ion batteries and lead-acid batteries in India has bagged a contract from state-owned Rajasthan Electronics and Instruments Limited (REIL) for setting up 4,244 multi-standard EV (electric vehicle) charging stations across the country. This is the second such contract won by the company from REIL in about a year. REIL, a Mini Ratna company, has given the contract for supply, installation and commissioning of over 4244 multi-standard EV charging stations with CCS, CHAdeMO, Type-2 and Bharat specification protocol across the country. Okaya is continuously engaged in enhancing the EV charging infrastructure in the country and has already established its credentials as a trusted partner with several reputed organisations.

    Gujarat

    Gujarat has always been a hub for renewable energy resources and applications. The Kutch Energy Park, stated to be the biggest in the world could drastically change the Indian Renewable Spectrum of power generation and utilisation. Gujarat is now also stepping out to be the biggest partner in Lithium Refining Technology. India will build its first Lithium refinery in Gujarat. A state-owned company will invest one thousand crore Rupees for this. That’s more than one hundred million dollars. The facility will process Lithium ore to produce battery-grade Lithium. That brings us to step three, competing in the global markets. For this, India will have to eat into China’s global market share. India plans to buy Lithium to ensure supplies that could potentially last decades and make India self-reliant. Mobile Manufacturing too has a broad landscape in Gujarat. A global appliance maker with a new manufacturing capacity in Noida is now in the process of doing a final review to shift base to Gujarat. An internal analysis by the company showed that the company could save almost Rs 430 crore annually if this shift was made. Leaving behind areas like Himachal Pradesh and Delhi-NCR (Greater Noida), Gujarat is slowly becoming the preferred destination of electronic appliance makers.

    Uttar Pradesh

    Many global technology companies have set up a manufacturing base in India. Samsung got the nod from the Uttar Pradesh government to make OLED at its Noida factory recently. Though such investments are significant but investments in R&D, semiconductors and future technology need a lot of impetus. In a big boost for the government’s Make in India push and nation’s evolving contract manufacturing space, Indian electronics major Dixon Technologies has entered into an agreement with Motorola Mobility to manufacture the brand’s smartphones in India. Padget Electronics will be manufacturing smartphones for Motorola at its manufacturing facility based in Uttar Pradesh (UP)’s Noida. The company had recently invested Rs 75 crore to set up its 11th manufacturing facility in Noida, which would be its third dedicated facility for assembling mobile handsets. UP has also prepared a common beneficiary database of the citizens who, based on the family profile, are eligible for many schemes. This Artificial Intelligence-based database will help the Government to target citizens with all the schemes they are suited for and avoid duplication of efforts in the way of approaching separately for different schemes.

    Assam

    Assam’s pride IIT Guwahati has put in every effort to overcome all unprecedented challenges of 2020: From virtual lessons to ensure continuity of learning for students, to virtual-reality based convocation addressed by Prime Minister Modi. IIT Guwahati has been in the forefront in the fight to stop the spread of novel coronavirus and has been providing scientific and technological support, an extension of sophisticated instrument facilities as well as involved in the immediate development of life-saving equipment to Assam State and Guwahati Medical College and Hospital. Since the initial days of the COVID19 outbreak, IIT Guwahati has prepared hand sanitizers at its various departments and academic centers for public distribution. On research front, a few projects undertaken/ completed are listed herein.

    Jharkhand

    Jamshedpur would host eastern India’s biggest electronic manufacturing cluster by the end of this year opening doors of investment in the sunrise sector and ushering in employment opportunities and see the region emerging as an electronic hub. Jharkhand Industrial Area Development Authority (JIADA) informed that the infrastructure work of the Rs 139-crore electronics manufacturing cluster (EMC) situated close to the Adityapur Toll Bridge is nearing completion and would be handed over to the state government by end of this year.

    Maharashtra  

    The Government has come out with a renewable energy policy that has set a target of adding 17,385MW renewable energy capacity by 2025 and an investment of Rs 75,000 crore is expected in this sector in the coming five years. The Maharashtra Government has decided to increase the Maharashtra Electronic Policy tenure by two years and also extend its scope. The policy issued earlier is set to expire on April 10, 2021, therefore it was decided to extend it till March 31, 2023. The Cabinet has also decided to align the policy with center’s Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS). The state government has appointed Maharashtra Industrial Development Corporation (MIDC) as the implementing agency for the development of the Centre’s Modified Electronic Manufacturing Clusters scheme (EMC 2.0) in Maharashtra. The objective of the scheme is to provide support for the creation of world-class infrastructure along with common facilities and amenities. Different firms in Maharashtra will invest ₹20,000 crores in this sector, which will yield an annual production of electronic items worth ₹1 lakh crore.

    Odisha

    Investment Opportunities in Electronics System Design & Manufacturing (ESDM) Sector in Odisha would be boosted and a new policy would be launched soon that will further improve what the State offers today in terms of incentive and support. Odisha boasts of the best skills ecosystem in the region. Odisha is on the cusp of an information & communication technology revolution. The State accords utmost importance to the adoption of technology to impact millions of citizen’s lives. In alignment with the 5T principles of good governance (Teamwork, Technology, Transparency, Time, Transformation), the State is all set to realize the vision of digital democracy. One of the major successful initiatives by the government is Go Swift, which is a one-stop investor facilitation portal for ease of doing business in Odisha. It automates major clearances, permits, and approvals required for the establishment & expansion of industries in Odisha.

    Goa

    With a strategic location, access to seas, rail connectivity, and upcoming hubs for industry and marine facilities, Goa is ready to bring export-led growth to India. The Goa Government has invited US companies to invest in Goa via a 100 percent FDI route.  The government would focus on setting up education hubs for knowledge-based industries, entertainment hubs, IT campuses, and startup promotion policies and has also expected investment in the coastal state to come from IT-enabled companies, manufacturing, and ancillary units. The Goa government has decided to expedite the process of setting up an electronics manufacturing cluster (EMC) at Tuen village in North Goa as it is set to form a special purpose vehicle (SPV) soon.  The EMC is being developed under the scheme of the Union Ministry of Electronics and Information Technology.

    Karnataka

    Karnataka apart from the massive IT hubs it owns is also now stepping into the Aerospace and Defence Production units. The State cleared five projects with a total investment potential of Rs 26,659 crore and can generate employment to 13,341 people. Investments cleared in the 55th SHLCC meeting include two proposals by Elect Pvt Ltd in Hubli/Dharwad, one worth Rs 14,255 crore on 85 acres of land for electric vehicle manufacturing, with a potential to generate employment for 867 people. The other is worth Rs 6,339 crore on 88 acres for lithium-ion cells and battery manufacturing unit that can generate 1,804 jobs.

    Telangana

    Telangana accounts for over six percent of the electronics production in India and has significant headroom for growth. Seminole Electronics, which has recently set up its manufacturing facility at Hardware Park in Hyderabad is developing new audio products and is in talks with two global electronic gadget makers to be an original equipment manufacturer for them. While the State has been pro-active in enacting its own policy to boost the growth of the sector, it could benefit from the Centre’s Production Linked Incentive Scheme and Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors. The electronics manufacturing sector can play an important role in integrating the State into the Global Value Chains (GVCs) of downstream industries such as mobile phones, semiconductors and consumer electronics. Telangana is one of the fastest-growing States in India in terms of installation of solar power and ranks second in terms of solar power generation, after Karnataka. To promote micro, small and medium enterprises (MSMEs), the Telangana State Industrial Infrastructure Corporation (TSIIC) has kept nearly 992.67 acres of vacant plots available for these enterprises across 52 industrial parks in the State.

    Andhra Pradesh

    Andhra Pradesh can play a key role in strengthening manufacturing with the development of the YSR Electronics Manufacturing Cluster at Kopparthy in the Kadapa district. YSR Electronics Manufacturing Cluster (EMC) at Kopparthi of Kadapa district is being developed with all facilities. The Government has welcomed investors to set up shop in the facility. All electronic industries in the EMC will be exempted from inspections under the Factories Act and others, barring inspections arising out of specific complaints.

    Kerala

    With one of the primary hubs for renewable energy resources, Kerala is witnessing immense changes in the renewable sector. Hopes of the Amballoor electronic hardware park getting a boost in the budget received a jolt, as there was no specific allocation for speeding up the much-delayed project. A special purpose vehicle (SPV) will be formed for the detailed planning, design, implementation, operation, and management of the projects. There will be an equal number of representatives of the State government and the NICDIT on the board of the company, which will be a 50:50 equity participation joint venture. Integrated Manufacturing Clusters (IMCs) are planned along the corridor to boost manufacturing activities, including electronics, IT, biotechnology, and life sciences, in the districts of Palakkad, Thrissur, and Ernakulam in Phase I, and the districts of Kannur, Kozhikode, Malappuram and Kasaragod in Phase II. Over the past four years, there has been a steady increase in the size of the state’s manufacturing sector. The share of manufacturing increased too and as per quick estimates of the state’s GSVA, the sector grew tremendously. The Kerala Micro Small Medium Enterprises Facilitation Act 2019 and the rules made therein is one of the key initiatives under the ease of doing business reforms undertaken by the industries department for establishing and operating MSME units. It is notable that a new set of modern industries are growing. The top industries (with respect to value-added) are chemicals, refined petroleum products, rubber and plastic products, electronic products, and pharmaceuticals, medicinal botanical products.

    Tamil Nadu

    Considering the important landscape and growth in recent times in terms of electronics manufacturing cluster, Apple assembler Pegatron has chosen Tamil Nadu to set up its manufacturing unit in India. Concomitantly, one of India’s most reputed corporate houses, the Tatas, through Tata Electronics will manufacture iPhone components from a production plant in Tamil Nadu as well. Pegatron has already registered a company in Chennai as a subsidiary. Tamil Nadu is a top investment destination in India for foreign investors due to the state’s advanced infrastructure and network capacity as well as locational advantages that cater to its well-established manufacturing ecosystem and facilitate exports. Tamil Nadu’s economic activity centers on its service, manufacturing, and agricultural sectors. Foreign investments contribute 14.9 percent to the total investments received by the state. With Tamil Nadu’s new industrial policy likely to be unveiled this month, the State hopes to continue its remarkable run as a favorite destination for investors in the new world grappling with Covid-19. The state should also emulate the success of the Singapore model, by which chemical and petrochemical manufacturing sectors contribute 5 lakh crore annually to Singapore’s economy.

    Let us talk about the Future

    The State Government and their approaches combined with the popular and efficacious schemes has boosted the electronic sector and is also expected to produce good yield throughout the country. The role of sustainability and self-reliance has always proved to be reliable and long-lasting. India also has put high expectations on Semiconductors, which are used in the majority of electronic products today and constitute to be a significant part of the total value of Bill of Material. The government of India is keen to incentivize and attract investment in setting up of Semiconductor FABs in India. Like mobile and electronic manufacturing, the PLI scheme for battery manufacturing will give a much-needed fillip to the country’s manufacturing. The digital infrastructure has emerged as a more significant infrastructure as compared to traditional infrastructure necessities such as power and roads. India is today the hub of mobile manufacturing and must become the biggest manufacture center of laptop manufacturing, machine 2 machine equipment, of tablets, etc. Hoping that 2021 would be a new reign in terms of gaining self-efficiency, self-sustainability, self-reliance, and moreover the name as a golden bird which would serve the globe and power the businesses.

    By Mannu Mathew | Sub Editor | ELE Times

     

    Mannu Mathew
    Mannu Mathewhttps://www.eletimes.com
    An engineer and a journalist, working, researching, and analyzing about the technology sphere from all possible vector, Currently working as a Sub-editor / Technology Correspondent at ELE Times

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