Introduction to UPEMP 2020
The Uttar Pradesh Electronics Manufacturing Policy (UPEMP) 2020 has demonstrated remarkable success in transforming the state’s economic and employment framework. The policy was introduced with the goal of establishing Uttar Pradesh as a premier destination for electronics manufacturing by attracting significant investments and creating extensive job opportunities. The policy set ambitious targets of attracting investments worth ₹40,000 crore and generating approximately 400,000 employment opportunities. Recent government data indicates that these objectives are well underway, with substantial contributions from key industry players.
For instance, Samsung has invested ₹4,825 crore to build the world’s largest mobile phone manufacturing facility in Noida, marking a substantial step toward establishing Uttar Pradesh as a global electronics manufacturing hub. Additionally, Dixon Technologies has launched multiple manufacturing units across the state, further consolidating Uttar Pradesh’s position within India’s electronics and semiconductor industry.
Vision for Electronics Manufacturing
The UPEMP 2020 was designed with a clear vision to make Uttar Pradesh a global electronics manufacturing hub by fostering a thriving Electronics System Design and Manufacturing (ESDM) ecosystem. The policy aims to:
- Create extensive employment opportunities
- Support small and medium enterprises (SMEs)
- Encourage sustainable practices within the electronics sector
Key Components of UPEMP 2020
The policy outlines several strategic initiatives to achieve its vision:
- Establishing Electronics Manufacturing Clusters (EMCs): Three EMCs and Centers of Excellence (CoE) are being set up across the state to attract both domestic and international investors.
- Creating ESDM Parks: These parks will cater to electronics manufacturing and provide necessary infrastructure.
- Investment and Job Creation Targets: The policy aims to attract investments worth INR 40,000 crore and generate up to 400,000 jobs.
- Support for MSMEs: Dedicated infrastructure, rental facilities, and workforce training are being provided to assist Micro, Small, and Medium Enterprises (MSMEs).
Policy Highlights and Incentives
To foster growth in the electronics manufacturing sector, the policy provides both fiscal and non-fiscal incentives to investors and manufacturers.
Fiscal Incentives
- Capital Subsidy: Eligible units can access a 15% subsidy on fixed capital investment. Larger investments can avail additional subsidies of up to INR 250 crore.
- Interest Subsidy: An interest subsidy of 5% on loans, capped at INR 1 crore annually, is offered to ease financing challenges.
- Stamp Duty Exemptions: The policy provides full stamp duty waivers for individual ESDM units and partial waivers for ESDM parks.
Land and Infrastructure Support
- Land Purchase Subsidies: Firms setting up EMCs and ESDM parks can avail up to a 75% subsidy on land purchases in specified areas.
- Infrastructure Development: Significant investments are being made to improve infrastructure to attract global players.
Skill Development Initiatives
- The UP Skill Development Mission is aligned with the policy to address workforce requirements in the electronics sector.
- Companies providing training and apprenticeships to employees can access additional incentives.
Electricity Duty Exemption
- Depending on the region, manufacturing units can benefit from a 50-100% exemption on electricity duty for up to 10 years.
Strategic Impact of UPEMP 2020 on Uttar Pradesh’s Growth
The UPEMP 2020 policy has been instrumental in positioning Uttar Pradesh as a significant player in India’s electronics and semiconductor manufacturing landscape. In 2023, the state achieved a Gross State Domestic Product (GSDP) of USD 300 billion, with the electronics sector contributing significantly to this growth. Notably, electronics manufacturing accounted for 22% of Uttar Pradesh’s exports during the 2023-24 fiscal year.
Major Investments
The policy has attracted investments from major global and domestic players:
- Samsung: Invested ₹4,825 crore to set up the world’s largest mobile phone manufacturing facility in Noida.
- Dixon Technologies: Launched multiple manufacturing units across the state.
- Microsoft, Adani, and Hiranandani Group: Established significant data centers and advanced facilities in the state.
Infrastructure Development
The policy has catalyzed investments in state-of-the-art infrastructure, enhancing the state’s capacity to attract and retain major electronics manufacturers.
Future Prospects
The Uttar Pradesh government plans to further enhance the UPEMP framework to keep pace with evolving industry demands. Key areas of focus include:
- Sustainable Growth: Investments in renewable energy are in the pipeline to ensure the sector grows sustainably and aligns with national and global environmental standards.
- Skill Development: Continued emphasis on workforce training to meet the demand for skilled labor in the electronics sector.
- Policy Reforms: Further enhancements to the policy framework to attract more investments and strengthen Uttar Pradesh’s position as a leading electronics manufacturing hub.
Conclusion
The Uttar Pradesh Electronics Manufacturing Policy 2020 has proven to be a game-changer for the state’s economic and employment landscape. By attracting substantial investments and creating extensive job opportunities, the policy has positioned Uttar Pradesh as a competitive player in the global electronics manufacturing market. As the state continues to improve its infrastructure, invest in sustainable energy, and support skill development initiatives, it is well on track to become a leading electronics manufacturing hub in India.