Electronics manufacturing: North India sitting on huge opportunities

North India offers various opportunities for the growth of the electronics industry. However, aggressive efforts from the government as well as the industry is the need of the hour

Electronics ManufacturingNorthern India, comprising Delhi, Noida, Rajasthan, Himachal Pradesh and Punjab, is a big market for electronics. While Delhi is known as India’s electronics trading hub, Himachal Pradesh and Noida host some major electronics manufacturing units. Rajasthan, on the other hand, has both manufacturing and distribution networks for electronics.

Being a distribution centre, the amount of business done in Delhi is high, which makes it a very competitive market. Also, Delhi is home to one of the biggest electronics markets in Asia Lala Lajpat Rai Market. Here, the buyers get a wide choice of all sorts of electronics goods.

Says Manish Kwatra, CEO, Metro Electronic Products, “Even though some manufacturing has started taking place in the NCR region, Delhi still remains primarily the main distribution centre of electronics for north India and, to some extent, even east India. But its very small share in electronics manufacturing is expected to pick up.”

Most electronics manufacturing units are located in the tax free zones of north India like Baddi and Parwanoo in Himachal Pradesh, and in some areas of Rajasthan and Jammu. These plants manufacture UPS systems, inverters, batteries, etc. Delhi hosts the manufacturing facilities of some big players like LG, Samsung, Intex and many manufacturers of remote controls.

- Advertisement -

Government initiatives

The government has announced various schemes and policies to boost manufacturing in north Indian states to develop their industrial base.

The Delhi government recently announced initiatives that will help Delhi become a manufacturing destination. It plans to set up a knowledge based industries (KBI) park in Baprola, west Delhi, and a multi-level manufacturing and services hub in Ranikhera, north Delhi. These, it hopes, will attract investments worth Rs 700 billion by 2015, and generate employment opportunities for nearly 300,000 people.

Rajasthan’s most recent Industrial and Investment Promotion Policy (RIIPP), announced in 2010, aims to promote not only industry, but also accelerate inclusive economic growth. The single window clearance system that was announced under the scheme will speed up approvals in order to attract investors.

In Rajasthan, investors have set up ventures in fields like IT, electronics and engineering. The state has 322 industrial areas at present and more are in the pipeline. A dedicated freight corridor, stretching nearly 1500 km, passes through Rajasthan, covering Uttar Pradesh, Haryana, Rajasthan, Gujarat and Maharashtra. The state government has provided for two major junctions at Marwar and Phulera, offering high speed, high load connectivity for the movement of freight.

At Baddi, a manufacturing hub for north India, the major attractions for investors include 100 per cent outright excise duty exemption for a period of 10 years from the date of commencement of commercial production; 100 per cent income tax exemption for an initial period of five years and, thereafter, 30 per cent for companies for a further period of five years; a capital investment subsidy of 15 per cent on plant and machinery subject to a ceiling of

Rs 3 million, which is also applicable to existing units, etc. Many electronics companies like Havells, Su-Kam, Luminous, Spice Mobile, Secure Meters, Intex, SGS Tekniks, Digital Systems, Landist+Gyr and Gem batteries have set up plants in the Baddi-Nalagarh-Barotiwala belt.

Strengths and weaknesses

The main advantage Delhi offers to its manufacturers and traders is its close proximity to corporate and government decision making bodies, especially when there is a complaint or a suggestion that needs to be shared through industry associations like the Central Radio and Electronics Merchants Association (CREMA) and All India Radio and Electronics Association (AIREA). Other all India associations that work for issues related to the electronics industry and operate from Delhi are ELCINA, MAIT, CEAMA, TEMA, CMAI, etc. However, the city has certain weak points as well. Shares Manish Kwatra, “Delhi suffers from major lack of infrastructure—specially land and electricity. However, I feel that Delhi with the NCR can be promoted as a major hub for electronics manufacturing units if there is a combined approach taken by the government, manufacturer associations and trade bodies.”

Rajasthan enjoys a strategic geographical position between the northern and western growth hubs in the country, and 40 per cent of the Delhi Mumbai Industrial Corridor (DMIC) runs through it. It is well connected through its well developed road network, domestic airports in Jodhpur and Udaipur, and an international airport in Jaipur, which also has an air cargo complex. There are inland container depots (ICD) in Jaipur, Jodhpur, Bhilwara and Bhiwadi. Broadly speaking, the advantages of investing in this state lie in its vast supportive infrastructure, rich natural resources and a competent talent pool. Riding on these, Rajasthan has already become a hub for a host of industries, attracting both domestic and global players.

However, while Baddi offers certain concessions to the manufacturers, it has its own share of challenges, one of them being a severe shortage of skilled labour. “As per the policy of the state government, it is mandatory to appoint 70 per cent of the workforce from amongst the locals,” Vipul Kumar Jain, senior manager, Su-Kam Power Systems Ltd, had earlier shared with Electronics Bazaar. However, the state lacks a proper technical institute. Due to this problem, while large and medium companies survive as they can afford to get manpower from outside the state or train the local people, small scale units find it difficult to survive.

Another major problem being faced by the companies in Baddi is the missing rail connection. The area is not connected to any major town or city by rail and the high dependence on roads makes transportation difficult.

—By Nitasha Chawla

- Advertisement -
Loading form…

Industry's Buzz

Beijing Based Ingenic Semiconductor Launches HK IPO to Raise $410 Million

0
Ingenic follows domestic peers like Gigadevice and Montage Technology, which have turned to Hong Kong to broaden their global investor base to support Artificial...
Chip Making (representational Image)

India Expands Semiconductor Push With 5-8 New Facilities 

0
India is expected to add five to eight semiconductor facilities over the next seven to eight years as the country strengthens domestic chip manufacturing...

Lam Research to Train 3,500 Students in Semiconductor Process Integration

0
The programme will focus on developing semiconductor process integration coursework aligned with advanced logic technologies Semiconductor equipment maker Lam Research has partnered with the New...
AI Data center

XPU to CPU Ratio in Datacentres Moving From 10:1 to 1:1: Dell’Oro

0
According to the datacentre market research firm, Agentic AI and Inference are driving demand for front-end switch sales in data center networks differing from...
Chip Making (representational Image)

Assam Looks to Japan for Semiconductor, Energy Investments 

0
Assam is exploring Japanese investment in semiconductors, electronics, renewable energy, tea and tourism as it seeks to deepen economic ties with Japan.  Assam is seeking...

Learn From Leaders

Navdeep Narula, Executive Director, Client and Endpoint Solutions, Ingram Micro, India

“Enterprise Computing Is Shifting From CPU to GPU And Now Toward NPU-Based Systems ”...

0
The shift from CPU to GPU to NPU-based computing is redefining today’s enterprise endpoints. In an exclusive conversation, Navdeep Narula from Ingram Micro discusses...

India’s Robotics Supply Chain Still Depends on Imported Chips

0
How do you build India’s physical AI future when critical robot components still come from overseas? Niqo Robotics reveals where the gaps remain.  India’s push...
Gadhadar Reddy, CEO and Founder, NoPo Nanotechnologies

How A Material Thinner Than Human Hair Could Transform EV Batteries And Electronics –...

0
What if a material 200,000 times thinner than a human hair could transform EV batteries, semiconductors, and advanced electronics? NoPo Nanotechnologies is making that...
Raja Rajeev Kumar, Mentor at IIT Startups, Chairman of the Board of Trustees, LaxmiRamaVarma Holdings International, and Founder and CEO, ChromoSoul Ventures

“Build Strong Startups, and Funding Will Follow”- Raja Rajeev Kumar, IIT Startups, LaxmiRamaVarma Holdings...

0
While AI and software startups attract attention and capital, electronics ventures often struggle for both. Raja Rajeev Kumar from IIT Startups, LaxmiRamaVarma Holdings International...
Athil Krishna, Founder & CEO, iHUB Robotics

“We are building humanoid robots that can replicate human tasks.”- Athil Krishna, iHUB Robotics

0
This Indian startup is building humanoid robots from scratch. Athil Krishna of iHUB Robotics speaks with Nidhi Agarwal from Electronics For You about the...

Startups

Dr Naveen Yanduru, CEO, Axiro Semiconductor Private Limited

“India Can Lead In IP—If It BacksIts Own Builders”

0
Axiro Semiconductor designs RF and satellite chips, ships millions worldwide, and retains its startup mindset while tackling complex technical challenges. In a conversation with...
Dr Sanjay Ahuja, Founder and CEO of Cionlabs, India

“We are solving India-specific challenges rather than offering generic ‘black box’ IoT solutions.”

0
From hybrid mesh networking to AI-enabled edge devices, an Indian IoT startup is developing home-grown solutions to improve connectivity, strengthen privacy and support the...
RTLS

Amimotion’s World-Smallest UWB Tags That Give Factories A Digital Nervous System For Physical AI

0
A Bengaluru startup is turning factories into intelligent spaces with tiny UWB tags, AI-powered visibility, and real-time tracking that can automate workflows, improve safety,...
Vervesemi IPs and ICs portfolio

Vervesemi Integrated AI/ML-Based Analogue IP Blocks For Chips

0
An Indian startup is developing semiconductor IP blocks that enable chips to adapt to signal imperfections through real-time AI/ML-driven learning within silicon systems. Most people...

Rapid Radio’s Indigenous RFID Reader Platform That Enables Numerous Applications

0
RapidRadio’s innovation is not another RFID reader but a complete electronics platform that enables manufacturers to develop their own solutions faster and with greater...