What's Happening?
Haryana is actively pursuing the establishment of an electronics manufacturing hub, as announced by Chief Secretary Anurag Rastogi. The state aims to attract investments under the Union government's Electronics Component Manufacturing Scheme (ECMS). A high-level
meeting was held to strategize the setup of electronic component manufacturing plants, focusing on creating employment opportunities and integrating Haryana into the global electronics value chain. The state's Electronics System Design and Manufacturing (ESDM) Policy will offer fiscal and non-fiscal incentives to boost investment. Haryana currently contributes 2.9% to India's electronics exports and supports 1.3 million jobs in the sector. The new policy will include incentives for green energy projects, technology acquisition, and research and development facilities.
Why It's Important?
The initiative is significant as it positions Haryana to become a key player in India's electronics manufacturing sector, potentially increasing its contribution to national exports and job creation. By offering competitive incentives, Haryana aims to attract major investors and enhance its competitiveness against other states like Andhra Pradesh, Gujarat, and Uttar Pradesh. This move could strengthen India's domestic electronics production, which has been growing at a compound annual growth rate of 17% since FY 15. The development of an electronics manufacturing hub in Haryana could lead to increased economic activity and technological advancement in the region.
What's Next?
Haryana plans to announce a series of incentives under its ESDM Policy to attract investments. The state is exploring additional top-up incentives to enhance its appeal to ECMS-approved investors. The creation of enabling infrastructure, such as the Electronics Manufacturing Cluster at IMT Sohna, is expected to support the growth of the electronics component manufacturing ecosystem. Stakeholders, including investors and industry leaders, are likely to respond positively to these developments, potentially leading to increased investment and collaboration opportunities.
