In a bold move to solidify its leadership in technology manufacturing Karnataka’s Large and Medium Industries Minister M B Patil has directed officials to draft a visionary roadmap aimed at attracting $150 billion in future investments for mobile and electronics manufacturing and design within the state.
The directive followed a high-level meeting with a delegation from the India Cellular and Electronics Association (ICEA) led by its Chairman Pankaj Mohindroo. The discussions centered on leveraging a new national scheme to build a robust component ecosystem in Karnataka.
Aligning with National Policy, Crafting a State Vision
Minister Patil highlighted that the Union Ministry of Electronics and IT had launched a major electronics components manufacturing scheme in April. Karnataka is now exploring the introduction of a complementary state-level policy to amplify its impact.
“The proposal is still in the draft stage, and we welcome suggestions from ICEA,” Patil stated, emphasizing the state’s vast potential beyond mobile phones in industrial and strategic electronics.
Unpacking the Central Scheme’s Potential
ICEA Chairman Pankaj Mohindroo detailed the central scheme, which prioritizes high-value sub-assemblies like displays and camera modules, bare components, and critical manufacturing equipment. The programme offers performance-linked incentives and up to a 25% capital subsidy, backed by a corpus of ₹22,900 crore.
Mohindroo noted that as of November, the Union Government has already cleared 17 investment proposals worth ₹7,172 crore under this scheme. These projects are projected to create 11,800 direct jobs and produce goods valued at over ₹65,000 crore.
Positioning for the Future
By instructing officials to study the central scheme and policies from other states, Karnataka aims to design a highly competitive and attractive policy framework. The ambitious $150 billion investment target underscores the state’s intent to not just participate but lead India’s next phase of electronics manufacturing growth, moving up the value chain from assembly to high-precision component design and production.
