Electronic System Design & Manufacturing (ESDM)

INDIA LANDSCAPE

India's domestic demand for electronics stands at USD 155 billion in FY 2023 and is growing at 15% CAGR.
India is expected to achieve USD 500 billion in electronics production by FY 2030 growing at a CAGR of 25%.
Electronics finished goods will contribute USD 350 billion and electronics components will contribute 150 billion by FY 2030.
USD 30 billion in fiscal support to boost semiconductor and electronics manufacturing under Semicon India program.
India's electronics exports are valued at USD 22.7 billion in FY 2023.

Computer, electronic, and optical products contributed USD 399 million to Rajasthan's manufacturing output in FY 2022
Computer, electronic, and optical products contributed USD 64.2 million to Rajasthan's manufacturing gross value addition in FY 2022

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.

Rajasthan is focused on developing the ESDM sector with robust infrastructure support.

Mahindra World City in Jaipur offers a prime location with world-class facilities near a large, well-developed market. Bhiwadi (NCR) is emerging as a significant ESDM hub.
A Greenfield Electronics Manufacturing Cluster has been proposed in Salarpur, Khushkhera spread across 100 acres. The notable ESDM products manufactured / proposed to be manufactured in the cluster are Air Conditioners & Parts of Air Conditioners, Semiconductor ATMP, Electronic Fuel Injection Systems & IC Connectors for Two and Three Wheelers, Auto Electronic & EV Charging Components, Electronic Components, Solid State Devices, Scientific Instruments, PCB Assembly / EMS Services, Stabilizers, Transformers, Solar Lanterns, HDMI Players, Multi Media Speakers, Low Voltage Cables, Ferrite Core for Transformers etc.
Developed 415+ industrial areas spread over more than 51,500 acres of land.

All major locations in the state are well connected to domestic and export markets through all modes. The state has the 3rd largest road network in the country. The state's proximity to major ports such as Mundra Port and JNPT enables faster goods and cargo movement. Jaipur international airport also has air cargo facilities which is critical for movement of electronics goods.
Over 58% of the Rajasthan state area is within Delhi Mumbai Industrial Corridor (DMIC).
The state has presence of country specific Japanese zone in Neemrana under RIICO (Rajasthan State Industrial Development and Investment Corporation). The Neemrana zone hosts Japanese investors at Neemrana's Industrial Area NIC (M).
Rajasthan provides access to around 40% of India's market in the neighboring states and also serves as an indispensable medium of transport between North-Indian states and the ports on the Western coastline of India.

Universities: Rajasthan has a total of 88 universities out of which 53 private universities, 28 state-funded universities, and 7 other universities.
Nationally and Internationally Renowned Institutions: Rajasthan is actively developing its skilled workforce in the ESDM sector, with a sharp focus on comprehensive skill development initiatives. The state is home to numerous technical institutes, including prestigious ones like the Indian Institute of Technology (IIT) Jodhpur, Indian Institute of Management, Udaipur and Indian Institute of Information Technology (IIIT) - Kota, etc. providing a steady stream of engineering graduates.

Investment Subsidy (SGST Reimbursement) -75% of the State tax due and deposited for a period of 7 years OR
Capital Subsidy -13-28% of EFCI* to be disbursed in annual installments over 10 years OR
Turnover Linked Incentive -1.20% - 2.0% of Net Sales Turnover to be disbursed annually for 10 years.

Employment Booster -10% - 15% booster on chosen Asset Creation Incentive
Training & Skilling Incentive - Skilling support in form of a Training Subsidy of Rs. 4000 per worker per month for 6 months for training delivered in Rajasthan.

Investment of more than INR 500 crores - Option to redistribute benefits among ACI (Capital, TLI and SGST reimbursement)
Investment of more than INR 1000 crores and employment of more than 800 persons - Customization on a higher NPV of the Asset Creation Incentive upto 20% of the NPV of the chosen ACI.

The State will also allow telescoping and upgrade the earlier set of incentives paid on a lower slab basis the total incentives applicable once the full investment is completed.
If a group/cluster of enterprises within the same or nearby premises (within 50 km radius), comes in with a consolidated investment proposal, then it shall be eligible for cluster incentives.

For the execution of this Act, the Government of Rajasthan launched a web portal "https://rajudyogmitra.rajasthan.gov.in/" on 12th June 2019 for filing applications.
Issuance of 'Acknowledgement Certificate' upon submission of 'Declaration of Intent' electronically or physically to the nodal agency.
MSME unit is exempted from approvals and inspections under all State laws for 5 years from the date of issuance of the Acknowledgement Certificate.

RajNivesh portal provides a single point, an online interface and a time-bound clearance mechanism by acting as a one-stop information/registration / approval/tracking centre for clearances/approvals.
The platform integrates 120+ services across 14 departments, emphasizing the State's commitment to the implementation of investor-friendly policies that enhance ease of doing business and promote sustainable development.
Officials from 14 concerned Departments of State government have been deputed to the Bureau of Investment Promotion, Rajasthan for facilitation of investment proposals.