Electronic System Design & Manufacturing (ESDM)

ESDM

INDIA LANDSCAPE

#2
Largest mobile phones manufacturer in the world
#3
Largest startup ecosystem globally
  • ₹11.3 lakh crore electronics production in FY 2024–25, nearly 6x growth in a decade.
  • ₹3.27 lakh crore electronics exports in FY 2024–25, an 8x increase in a decade.
  • Electronics emerged as India’s 3rd-largest and fastest-growing export category in FY 2024–25; exports reached USD 22.2 billion in H1 FY 2025–26.
  • India is the world’s 2nd-largest mobile phone manufacturer, with 300+ manufacturing units
  • Mobile phone production reached ₹5.45 lakh crore, with exports of ₹2 lakh crore in FY 2024–25.
  • Smartphones became India’s #1 exported commodity in CY 2025, with exports of USD 30.13 billion.
  • Electronics manufacturing generated ~25 lakh jobs in the last decade and attracted USD 4+ billion FDI since FY 2020–21.
  • Semicon 1.0 and Semicon 2.0, with outlays of ₹76,000 crore and ₹1.28 lakh crore, respectively, are accelerating India’s semiconductor ecosystem.
  • ₹40,000 crore Electronics Components Manufacturing Scheme to deepen domestic component manufacturing and global value-chain integration.
  • Vision 2030–31: Build a USD 500 billion electronics manufacturing ecosystem in India.
ESDM Rajasthan

Rajasthan Landscape

Sector Performance:

  • 100-acre Greenfield Electronics Manufacturing Cluster at Salarpur-Khushkhera for electronics, semiconductor ATMP, PCB/EMS, EV electronics, components and other products with presence of State’s first semiconductor plant, an ATMP/OSAT facility of Sahasra Semiconductors.
  • An Electronics Manufacturing Cluster developed by ELCINA was inaugurated at Salarpur, Khushkhera, Bhiwadi. The cluster has been developed over 50.3 acres at a project cost of Rs.46.09 crore.
  • Rajasthan’s exports of Electronics & Computer Software increased to Rs.1,389.97 crore in 2024-25, from Rs.1,110.14 crore in 2023-24.
  • RIICO has enabled a flexible 10-year land payment facility for eligible projects under the Rajasthan Semiconductor Policy 2026, strengthening ease of investment for semiconductor units.
  • Bhiwadi–Alwar, Jaipur and Udaipur are developing as key electronics manufacturing clusters, strengthening Rajasthan’s ESDM ecosystem.
  • Rajasthan Semiconductor Policy 2026 targets fabs, ATMP/OSAT and chip design, backed by 35+ GW renewable energy and strong industrial infrastructure.

Rajasthan: Value Proposition for ESDM Sector

ESDM

  • 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 460+ industrial areas spread over more than 1 lakh acres of land.

  • Rajasthan provides access to around 40% of India's market in the neighbouring states and serves as an indispensable medium of transport between North-Indian states and the ports on the Western India.
  • Rajasthan has the 3rd largest network of national highways with 20 major national highways, 5th largest rail network in India, providing easy access to major ports such as Mundra Port and JNPT, nine inland container depots, one air cargo complex as well as seven airports with direct international and national connectivity.
  • Over 58% of state's area lies within Delhi Mumbai Industrial Corridor (DMIC).

  • Rajasthan has 73 engineering colleges (19 government and 54 private) with an annual intake capacity of approximately 27,753 students. In FY 2025-26, around 16,355 students were enrolled in engineering programs.
  • The State hosts premier institutions including IIT Jodhpur, IIM Udaipur, IIIT Kota, MNIT Jaipur, AIIMS Jodhpur and BITS Pilani, providing a strong pipeline of engineering, management and R&D talent.

Policies & Incentives

Asset Creation Incentives (ACI)
  • 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.
Special Incentives
  • 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.
Exemptions
  • 100% Stamp Duty
  • 100% conversion charges
  • 100% exemption of electricity duty for 7 years
Additional Incentives
  • 10% Thrust Booster on top of ACI chosen OR
  • 5% Interest Subsidy for period of 5 years OR
  • Anchor Booster - 20 % Anchor booster on top of ACI chosen.
Customized Packages
  • 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.
Other Unique Features
  • 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.

Ease of Doing Business

RAJ NIVESH
  • 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 190+ services across 18 departments, emphasizing the State's commitment to the implementation of investor-friendly policies that enhance ease of doing business and promote sustainable development.
  • Rajasthan MSME (Facilitation of Establishment and Operation) Act 2019 & (Amendment) Act, 2023:
    • MSME units submit a ‘Declaration of Intent’ electronically on online portal web portal
    • Acknowledgment Certificate issued electronically to applicant
    • For 5 years from the date of the Acknowledgement Certificate, eligible enterprises can be exempted from certain government approvals and inspections.
    • This applies where the State Government or concerned authority already has the power to grant such exemptions under a Central Act.
    • The exemption is subject to the conditions and provisions of the applicable Central Act.
    • After 5 years, Enterprises must obtain required approvals within 6 months from the date of expiry of acknowledgement Certificate.

Opportunities

Opportunities are emerging across multiple ESDM segments in the state.

Core electronics manufacturing

  • OSAT (Outsourced Semiconductor Assembly and Testing) facility
  • Consumer electronics manufacturing
  • Industrial electronics manufacturing
  • Electronics components manufacturing

Technology and infrastructure

  • Computer hardware manufacturing
  • Electronics park infrastructure development

Specialized and strategic electronics

  • Communication and broadcast electronics manufacturing
  • Strategic electronics manufacturing

Major Players in Rajasthan

Bosch
Perto
Genus
ZTE
Havells
Reil
Daikin
Sahasra
Secure
Elcina

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