The Indian ESDM sector is spreading its wings across the country, as trade bodies take up initiatives to chart its growth path in collaboration with state governments
By Gunjan Piplani
The Indian Electronic System Design and Manufacturing (ESDM) industry is opening up new avenues for existing players to grow further, and is also creating room for new players and start-ups to enter the industry. Understanding the need to promote the industry, India Electronics & Semiconductor Association (IESA) has inked a memorandum of understanding (MoU) with the Uttar Pradesh (UP) government to build up the ESDM ecosystem in the state and also promote UP as a hub for this sector.
In this tie up, IESA will provide support to the UP government. The trade association’s role will cover several key areas including fostering the start-up ecosystem, indigenous product development, the development of strategic roadmaps, cluster development, investment promotion and talent/skills development – all of which will promote the growth of the ESDM industry in the state.
“The government of Uttar Pradesh has identified ESDM as a focus area to ensure economic growth, enhance employment opportunities, promote indigenous product development and safeguard investors’ business interests in the state. Along with IESA, we are confident of creating a favourable ecosystem for electronics manufacturing in the state and building Uttar Pradesh up, for a brighter tomorrow,” says Jiwesh Nandan, IAS, principal secretary, Department of IT and Electronics, government of Uttar Pradesh.
Supporting and promoting ESDM
The Indian ESDM industry is experiencing multi-fold growth and, hence, offering ample opportunities for new businesses to find their place in the market. Ashok Chandak, chairman, IESA, shares, “The ESDM industry offers huge opportunities with potential in different verticals. There is a requirement of multiple clusters, incubation centres, skills development centres and Centres of Excellence (CoE) across the country and surely, the state can have several of these which would help it to take a leadership position in the sector.”
Why Uttar Pradesh?
UP, as a state, has a good mix of factors adding up to make it a perfect location to promote ESDM. First, the state has some key areas which have been already developed as industry hubs, such as Noida and Greater Noida, which will help trigger expansion to other cities of the state. Additionally, now many ESDM and allied companies are eyeing the Yamuna Expressway to set up units.
The second factor is the state’s proximity to the capital of the country. For companies with their headquarters or offices in Delhi/NCR region, UP could be a natural choice to set up manufacturing units. Moreover, the state will soon be coming up with three electronics manufacturing clusters (EMCs) as a part of the UP Electronics Manufacturing Policy 2014, thus offering the infrastructure to set up units.
The third factor supporting the state’s bid to become an ESDM hub is the pool of local talent from IIT Kanpur and IIIT Allahabad, which can fit in well with the ESDM sector’s needs, fuelling emerging start-ups or meeting the requirement for skilled employees at established companies.
Chandak also points out what is currently lacking in UP. He says, “Expeditious implementation of the state’s policies, supported by faster processing of investors’ applications/proposals would help to position UP amongst the leading states in the Indian ESDM sector.”
Boost to employment
In collaboration with IESA, the state is creating a strategic roadmap for the industry, so more avenues for new jobs will also open up. According to Chandak, “The industry also stands to gain by being present at multiple locations across the country, which would help in creating a strong ecosystem and in providing high domestic value addition. We feel that the state can target a market share of about 8-10 per cent of the total opportunities available in India. Considering the growth prospects of the ESDM sector in the country, this will have a high impact on the state’s economy,” he adds.
IESA has already provided immense support to various state governments, including Maharashtra and Odisha, by proposing strategic roadmaps and attaining faster approvals of EMC applications, thereby catalysing the economic growth of the states.
These collaborations by IESA will help create a stronger foothold for the ESDM industry across various states of the country, which can be exploited.
Key features of the MoU
Fostering the start-up ecosystem and indigenous product development: Setting up ESDM incubation centres in the state at jointly identified locations
Development of strategic roadmap: Development of strategic roadmap for ESDM industry in the state
Cluster development: Preparation of detailed project reports for the brownfield/greenfield EMCs at identified locations
Investment promotion: Setting up international desks for the state in jointly identified foreign locations
IESA member companies operating in UP