Electronics has emerged as one of the fastest-growing industries in an increasingly digitalized world. India has experienced rapid growth of electronics manufacturing with a CAGR of around 23% during the last five years, with domestic production of electronics hardware touching $76 bn in 2019-20.
The country is recognized as a global hub for IT services and has emerged as the world's 3rd largest start-up ecosystem. The rapid implementation of technological advancements, exemplified by the emergence of 5G networks and IoT, is expediting the widespread integration of electronic products.
Flagship programs like 'Digital India' and 'Smart City initiatives are amplifying the need for IoT in the electronics market, undoubtedly paving the way for a transformative era in electronic product development.
Strategic Utilization of Subsidies:
Rapid and exponential growth has been experienced in the electronics ecosystem across diverse sectors, including mobiles, telecom, auto electronics, industrial electronics, and many more.
Major Government initiatives such as 'Digital India,' 'Make in India,' and supportive policies, including a favorable FDI Policy for electronics manufacturing, have simplified the process of setting up manufacturing units in India. By tapping into various subsidies, electronics companies can boost their productivity and achieve a competitive edge over their competitors.
As per Uttar Pradesh Industrial Investment & Employment Promotion Policy 2022, 15% of FCI, maximum of up to 100 Cr, will be provided to eligible companies on investments exceeding 1,000 Cr. A 5% additional capital subsidy can be availed by the investors applying under the following focus areas: Defense Electronics, Strategic Electronics, and Robotics. The National Policy on Electronics 2019 strives to create an enabling environment for Electronics System Design and Manufacturing (ESDM) to make the industry globally competitive.
Production Linked Incentive scheme for Large Scale Electronics manufacturing offers an incentive of 4-6% on incremental sales over a period of 5 years for mobile phones and specified electronic components.
The Indian government is also offering an incentive of 2-4% on incremental sales over a period of 4 years for the manufacturing of Laptops, Tablets, All-in-one PCs, and Servers.
The Punjab Government is offering 100% exemption or reimbursement on purchase or lease of land and building and land development charges.
Wired for Success
Partnership with subsidy experts is essential to navigate the complex corridor of different subsidy programs offered by the government. By aligning their strategies with these subsidies, companies can enhance their manufacturing capabilities, explore research collaborations, and foster skill development among their workforce.
Strategic utilization of government subsidies will lead the companies toward new heights of excellence and technological prowess. The commitment of the Government of India, coupled with the participation of stakeholders, will propel the nation towards a future powered by sustainable, affordable, and reliable energy.
SubsidyPro is the most knowledgeable and trusted partner in navigating the complex world of government subsidies in India. It guides and assists entrepreneurs through the maze of subsidy programs offered by various governments. Subsidy Pro specializes in identifying eligible subsidies, preparing requisite documentation and ensuring compliance. The company helps unlock the potential of subsidies by providing customized solutions as per client’s needs and objectives to make their financial planning more viable
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