Electronic System Design & Manufacturing (ESDM)
INDIA LANDSCAPE
ESDM Sector: The National Strategic Priority
- India is expected to become a USD 1 trillion digital economy by FY 2026
- USD 15 billion worth electronics market in India with domestic production of 65%
- USD 30 billion fiscal incentives for ESDM & allied sectors
- The country's electronics export is expected to reach USD 120 billion by FY 2026
- India's domestic production grew at 13% (CAGR) from USD 49 billion in FY 2017 to USD 101 billion in FY 2023
Sector Performance at the National Level
Global mobile phones manufacturing player
Consumer electronics & appliance industry by 2025 in the world
Largest startup ecosystem globally
- 1,140 product development centers and R&D centers employing over 900,000 professionals
- USD 120 billion electronics production in India; expected to reach USD 300 billion by 2026
- USD 497 billion financial incentives to be disbursed over 8 years under Electronics Manufacturing Clusters Scheme
Rajasthan Landscape
Economic Performance:
- GDP: USD 179 billion in FY 2023
- State FDI: USD 2,344 million (cumulative 2020 to 2024)
- No. of factories: 10,237 (ASI: 2021-22)
Sector Performance:
- Total output of electronics manufacturing: USD 431 million (ASI: 2021-22)
Rajasthan: Value Proposition for ESDM Investors
- Copper: Rajasthan has significant copper reserves, which are essential for the production of various electronic components and wiring
- Zinc and Lead: the state is a major producer of zinc and lead, which are used in various electronic components, batteries, and protective coatings
- Silica: found in abundance, silica is crucial for the production of glass and semiconductors
- Manganese: used in the production of batteries and various electronic components
Rajasthan is committed to development of the ESDM sector through infrastructure support. Mahindra World City in Jaipur provides an excellent location with world-class facilities, in proximity to a large and well-developed market. Bhiwadi (in NCR) is developing as a major ESDM hub.
One Greenfield Electronics Manufacturing Cluster has been developed in Salarpur, Alwar. Moreover, the State Government is also implementing another Greenfield Electronics Manufacturing Cluster in Karoli Industrial area, Bhiwadi. Rajasthan has 415+ well developed industrial areas with 10K hectares of industrial land available (#4 in India)
Rajasthan is actively developing its skilled workforce in the ESDM sector, with a sharp focus on comprehensive skill development initiatives. The state has 100+ universities and colleges, and 1,600+ industrial training institutes, with ~40% of human capital employed in skilled and semi-skilled roles forming a strong foundation for growth
- RIICO (Rajasthan State Industrial Development and Investment Corporation) allotted 20,005 sqm of land at Neemrana's Industrial Area NIC (M) to Daikin Education & Skill Development Society
Policies & Incentives
Rajasthan Investment Promotion Scheme 2022 (RIPS 2022)
Asset Creation Incentives (ACI)
- Capital subsidy up to 28% over 10 years, OR
- Turnover linked incentives (TLI) up to 2% for 10 years, OR
- Investment subsidy (net SGST reimbursement) up to 75% for 7 years
Exemptions
- 100% exemption on electricity duty for 7 years
- 100% stamp duty and conversion charge exemption
- 100% exemption in land tax and mandi fee
Special Incentives
- Employment booster up to 15% on chosen ACI
- Additional incentives: green incentives, freight subsidy, cluster incentives, training and skilling incentive
Additional Incentives (For manufacturing thrust sectors)
- 10% thrust booster on top of ACI chosen, OR
- 5% interest subsidy for 5 years, OR
- 20% anchor booster on top of ACI chosen to first 3 units in a region / sector
- Policy allows phasing of investment without loss in benefits
- Additional flexibility for investors to design own ACI mix through customized packages
Rajasthan Micro, Small and Medium Enterprises (Facilitation of Establishment and Operation) Act, 2019
- MSMEs are exempted from approvals and inspections under any Rajasthan Law for 5 years
Ease of Doing Business
- RajNivesh portal provides a single point, online interface and a time-bound clearance system by acting as a one-stop information / registration / approval / tracking centre for clearances & approvals
- The platform integrates 120+ services across 15 departments, emphasizing the state's commitment to the implementation of investor-friendly policies that enhance ease of doing business and promote sustainable development
- 100% FDI allowed under automatic route in the sector (except defence electronics)
Opportunities
Core electronics manufacturing
- Consumer electronics
- Industrial electronics
- Electronics components
Technology and infrastructure
- Computer hardware
- Electronics park infrastructure development
Specialized and strategic electronics
- Communication and broadcast electronics
- Strategic electronics
Major Players in Rajasthan
