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ELECTRONICS &
ELECTRICAL
HIGHLIGHTS OF ELECTRONICS
MANUFACTURE IN KARNATAKA
Ÿ One of the largest contributors to Electronic Industrial Output in the country and recorded a growth rate
of 18% CAGR (2008-13).
Ÿ Presence of 85 chip designing companies.
Ÿ ESDM Revenues – USD 2.8 bn.
Ÿ 1 mn Direct Employment,2.5 mn Indirect Employment in IT sector.
Ÿ 3,500Tech Companies.
Ÿ India’s first Centre of Excellence on Internet ofThings (CoE– IoT) was launched in Bengaluru,Karnataka on
July 7,2016.
ELECTRONICS & ELECTRICAL
WHY ELECTRONICS & ELECTRICAL,
KARNATAKA?
Ÿ Being home to 70% of India’s chip designers makes Karnataka the 2nd largest chip design hub of India.
Ÿ Bangalore is the 4th largest technological cluster in the world and the 1st state to roll out ESDM skill
development program targeting for 15,000 youth to be trained across 5 years.
Ÿ Preferred Location for designing companies.
Ÿ Bengaluru is a global hub for R&D activity in the software industry, which will greatly aid the electronic
hardware industry.
Ÿ Two ESDM clusters in Bengaluru and Mysuru being set up with total investment of USD 25 mn.
Ÿ Two world class innovation centres for designing,prototyping,testing,characterization and certification-IIIT
- Bengaluru and STPI – Bengaluru.
Ÿ Apple Inc.has recently had discussions about the initiatives in manufacturing in Karnataka.
INVESTMENT OPPORTUNITIES
Potential Areas of Investments
Medical Electronics
Ÿ Diagnostic and therapeutic instruments
Ÿ Equipment testing and monitoring with wireless connectivity
Communication Hardware
and Networks
Ÿ Manufacturing of networking hardware like gateways,
routers, network bridges, switches, convertors, etc
Ÿ Mobile phones, Personal Display Assistants (PDAs)
Semiconductor Design
Ÿ Medical, automotive, mobile equipment
Ÿ Design for consumer electronics like personal electronics,
PCs, servers, etc
Consumer Electronics
Ÿ Audio and video equipment for home entertainment (TV
sets, set top boxes, music systems), and musical instrument
amplification
Defence Electronics
Ÿ System design, engineering and testing services
Ÿ Development of Tactical Communication System; Internet
protocol based mobile system
ELECTRONICS & ELECTRICAL
GOVERNMENT INITIATIVES
Ÿ Karnataka Electronic System Design and Manufacturing (ESDM) Policy announced in 2013 which provides
measures for investments,ease of doing business,venture capital,R&D and capital subsidies,Special package
for Mega Projects.
Ÿ First state to roll out initiatives for innovation centres,skilling centres and dedicated ESDM clusters.
Ÿ 3000 personnel to be trained every year in Electronics System Design & Manufacturing (ESDM) sector.
Ÿ Financial and human resource contribution in providing flagship initiatives such as support infrastructure,
the SMART Lab (Semiconductor Measurement, Analysis and Reliability Test Lab) and the Electronic
Hardware common facility center.
Ÿ Monetary support for filing patents.
Ÿ Fiscal incentives in the form of capital subsidy (Upto 10% of capital investment or INR 50 million,whichever
is lower) and R&D subsidy (reimbursement of up to 20% of actual R&D spend upto maximum of 2% of
AnnualTurnover).
Ÿ Capital Subsidy forAnchor units in Greenfield clusters.
Ÿ Encouraging start up ecosystem, patent grants and incentives for export markets, Preferential Market
Access (PMA) and Post performance Incentives and subsidies.
Ÿ Karnataka SemiconductorVenture Capital Fund (KARSEMVEN Fund),a specialized fund for semiconductor
start-ups.
ELECTRONICS & ELECTRICAL
ELECTRONICS & ELECTRICAL COMPANIES
MAKING IN KARNATAKA
ELECTRONICS & ELECTRICAL

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Electronics

  • 2. HIGHLIGHTS OF ELECTRONICS MANUFACTURE IN KARNATAKA Ÿ One of the largest contributors to Electronic Industrial Output in the country and recorded a growth rate of 18% CAGR (2008-13). Ÿ Presence of 85 chip designing companies. Ÿ ESDM Revenues – USD 2.8 bn. Ÿ 1 mn Direct Employment,2.5 mn Indirect Employment in IT sector. Ÿ 3,500Tech Companies. Ÿ India’s first Centre of Excellence on Internet ofThings (CoE– IoT) was launched in Bengaluru,Karnataka on July 7,2016. ELECTRONICS & ELECTRICAL WHY ELECTRONICS & ELECTRICAL, KARNATAKA? Ÿ Being home to 70% of India’s chip designers makes Karnataka the 2nd largest chip design hub of India. Ÿ Bangalore is the 4th largest technological cluster in the world and the 1st state to roll out ESDM skill development program targeting for 15,000 youth to be trained across 5 years. Ÿ Preferred Location for designing companies. Ÿ Bengaluru is a global hub for R&D activity in the software industry, which will greatly aid the electronic hardware industry. Ÿ Two ESDM clusters in Bengaluru and Mysuru being set up with total investment of USD 25 mn. Ÿ Two world class innovation centres for designing,prototyping,testing,characterization and certification-IIIT - Bengaluru and STPI – Bengaluru. Ÿ Apple Inc.has recently had discussions about the initiatives in manufacturing in Karnataka.
  • 3. INVESTMENT OPPORTUNITIES Potential Areas of Investments Medical Electronics Ÿ Diagnostic and therapeutic instruments Ÿ Equipment testing and monitoring with wireless connectivity Communication Hardware and Networks Ÿ Manufacturing of networking hardware like gateways, routers, network bridges, switches, convertors, etc Ÿ Mobile phones, Personal Display Assistants (PDAs) Semiconductor Design Ÿ Medical, automotive, mobile equipment Ÿ Design for consumer electronics like personal electronics, PCs, servers, etc Consumer Electronics Ÿ Audio and video equipment for home entertainment (TV sets, set top boxes, music systems), and musical instrument amplification Defence Electronics Ÿ System design, engineering and testing services Ÿ Development of Tactical Communication System; Internet protocol based mobile system ELECTRONICS & ELECTRICAL
  • 4. GOVERNMENT INITIATIVES Ÿ Karnataka Electronic System Design and Manufacturing (ESDM) Policy announced in 2013 which provides measures for investments,ease of doing business,venture capital,R&D and capital subsidies,Special package for Mega Projects. Ÿ First state to roll out initiatives for innovation centres,skilling centres and dedicated ESDM clusters. Ÿ 3000 personnel to be trained every year in Electronics System Design & Manufacturing (ESDM) sector. Ÿ Financial and human resource contribution in providing flagship initiatives such as support infrastructure, the SMART Lab (Semiconductor Measurement, Analysis and Reliability Test Lab) and the Electronic Hardware common facility center. Ÿ Monetary support for filing patents. Ÿ Fiscal incentives in the form of capital subsidy (Upto 10% of capital investment or INR 50 million,whichever is lower) and R&D subsidy (reimbursement of up to 20% of actual R&D spend upto maximum of 2% of AnnualTurnover). Ÿ Capital Subsidy forAnchor units in Greenfield clusters. Ÿ Encouraging start up ecosystem, patent grants and incentives for export markets, Preferential Market Access (PMA) and Post performance Incentives and subsidies. Ÿ Karnataka SemiconductorVenture Capital Fund (KARSEMVEN Fund),a specialized fund for semiconductor start-ups. ELECTRONICS & ELECTRICAL
  • 5. ELECTRONICS & ELECTRICAL COMPANIES MAKING IN KARNATAKA ELECTRONICS & ELECTRICAL