October 22, 2020

Karnataka’s new industrial coverage to push cell manufacturing in state to Rs 30Okay cr: ICEA

The brand new industrial coverage of Karnataka is anticipated to push cell manufacturing in worth phrases within the state to Rs 30,000 crore and create 1.2 lakh jobs by 2023, cell handset and electronics physique ICEA stated on Sunday.

In August, Karnataka introduced New Industrial Coverage (NIP) 2020-25 which has a provision to incentivise cell manufacturing.

The India Mobile and Electronics Affiliation (ICEA), whose members embody Apple, Winstron, Lava, amongst others, stated particular coverage incentives similar to manufacturing linked incentive of 1 per cent of annual turnover in the course of the coverage interval for 5 years is a welcome and daring step by the state authorities.

“We’re assured that such initiatives will assist the ESDM (Electronics System Design and Manufacturing) sector to develop. At present the state’s share within the nation is 1-1.5 per cent (Rs 2,500 crore) of cell manufacturing, which is anticipated to cross 7 per cent or Rs 30,000 crore by 2023,” ICEA Chairman Pankaj Mohindroo stated.

“This may also increase employment by creating 1.2 lakh jobs by 2023,” he added.

Karnataka has an estimated gross state home product of over Rs 16 lakh crore, with 70 per cent of India’s chip designers based mostly within the state.

The brand new industrial coverage offers for reimbursement of stamp obligation and registration costs, reimbursement of land conversion price, energy tariff reimbursement and exemption from electrical energy obligation.

“The Karnataka authorities’s NIP 2020-25 is a really ahead wanting coverage which addresses a number of essential labour reforms similar to working shifts for girls workers, extra time hours…Such measures put Karnataka on the forefront of ‘Ease of Doing Enterprise’ within the nation,” Sudipto Gupta, managing director, Wistron India and chairman of ICEA’s labour and HR Committee stated.

Wistron is among the digital manufacturing firms within the state which plans to lift its headcount from round 2,000 in Could 2020 to 20,000 by the top of subsequent fiscal yr.