ICEA Welcomes Karnataka Electronics Manufacturing Policy 2020 | Electronics Maker

New Delhi, Thursday, 17th September 2020: “ICEA welcomes the new Karnataka Electronics Manufacturing Policy 2020 which is aligned towards the fulfillment of the NPE 2019 goals. We are confident that on the basis of such forward-looking policy interventions,  India should be able to focus  its  efforts  to capture the investment opportunities originating from various global as well as domestic stakeholders to fulfill the Hon’ble Prime Minister’s Vision to establish India as World’s No. 1 mobile phone manufacturing destination.

In the Karnataka Electronics Policy, the State has already undertaken various non- fiscal measures such as land and labour reforms and several initiatives under ease- of-doing-business  to  attract  investments.  Along  with  these  reforms,  a  Special Incentive Scheme is proposed to provide the much-needed fiscal interventions that will  provide  a  fillip  for  ESDM  investments  such  as  Capital  Investment  Subsidy, Reimbursement of Stamp Duty and Registration Charges, Reimbursement of Land Conversion Fee, Power tariff reimbursement, Exemption from Electricity Duty and Production Linked Incentive (for new investments and expansions)

“Karnataka has been a pioneer in innovation and technology. The state has an estimated GSDP of $220 billion and the State is India’s largest chip design hub, with 85 plus chip design companies and 70% of India’s chip designers are based here. Specific policy incentives such as production linked incentive for new investments as well as expansion of 1% of annual turnover during the policy period of five years is a welcome and bold step by the State Government and we are confident that such initiatives will help the ESDM sector to grow The ESDM has the potential to play a huge role in the nation’s economic recovery”, said Mr. Pankaj Mohindroo, Chairman, ICEA. 

“Karnataka’s  progress  is  synonymous  with  our  nation’s  progress. As  the  nation’s focus has shifted from import substitution to becoming a global manufacturing hub Karnataka will also have to gear up to be globally competitive and in fact better than the best in terms of infrastructure, ease of doing business, quality of power, and cost etc.”, added Mr. Mohindroo.

Mr. Sudipto Gupta, Managing Director, Wistron India and Chairman, ICEA Labour and HR Committee, said “The GoK NIP2020-25 is a very forward looking policy which addresses several crucial labor reforms such as working shifts for women employees, overtime hours and FTE. Such measures puts Karnataka in the forefront of ease of doing business in the country.”

ICEA considers this to be a significant development post announcement of the landmark PLI and SPECS policies of the Government which has come into applicability with the objective to establish India as the Global HUB for mobile and electronics eco-system. Such progressive policy interventions would also definitely boost the Government’s current efforts to remain relevant to the alignments and re- alignments happening in the global mobile and electronics hardware manufacturing eco-system in the post-COVID-19 scenario through attracting further investments.