SPOTLIGHT ON INDIAN ELECTRONICS Spotlight on Indian Electronics | Page 96

STATE POLICY- KARNATAKA
1 Electronic System Design and Manufacturing( ESDM) as an emerging sector is strongly aligned to the professional skills, knowledge base and managerial talent available in the state of Karnataka in the field of VLSI, semiconductor chip design and embedded software. As of 2012, Karnataka has 85 chip design houses, 336 R & D facilities, delivers outsourced information technology solutions to over 400 of the global Fortune 500 companies and has over 6 lakh technology professionals employed in Bangalore alone.
1.1
Karnataka is home to a third of the software companies
1.5
9 of top 10 leading IT companies on Forbes Global
contributing more than 35 % of the national exports.
2000 list have based the headquarters of their India
1.2
Karnataka ' s electronic, computer software, and
operations in Bangalore.
biotechnology exports composed 63.5 % of its total
1.6
Karnataka Contributes around 500,000 IT professionals
exports in the year 2009-10.
from its leading engineering institutes to India ' s total IT
1.3
Karnataka ' s software exports Contributed 21.4 % to its
Workforce of around 2.5 million.
Gross State Domestic Product( GSDP) with export
1.7
Karnataka ' s IT Sector has attracted 44.6 % of total
CAGR Of 13.5 % and GSDP CAGR Of 15.2 % between
investments in the national IT industry in 2010-11.
FY ' 05 – FY10.
1.8
With investments of US $ 1271.45 million, 47 of the 58
1.4
BPO / ITEs companies grew to around 270 in number by
Special Economic Zones( SEZ) approved in the state
CAGR of 13.4 % from the years 2005 – 08, while
are Slated to drive the IT / ITES Sector
hardware exports grew to US $ 825 million at CAGR of 14.4 % in the referenced period.
2 While Karnataka has certain advantages for the conducive growth of the ESDM sector, this will not be enough as different
States will enjoy all the benefits from the Government of India Policy. In order to attract investments to Karnataka as compared to other States, it is necessary for Karnataka to have a Policy which has additional incentives to encourage the growth of ESDM sector. Hence, it is necessary to have Karnataka ESDM Policy.
3 Objectives
The objective of the Karnataka ESDM Policy is to facilitate,
Electronics Hardware design and manufacturing( which shall
promote and develop the " ESDM " sector in the State of
include embedded software) for IT, TeleCommunications,
Karnataka and make Karnataka a preferred destination for
Defense, Medical, Industrial, Automotive, Consumer Products,
investment in this sector. For the purpose of this Policy,
applications and components, parts, and accessories required
" ESDM " shall mean Electronics System Design and
for the aforesaid products and applications.
Manufacturing which includes, but not be restricted to,
4 The following targets are set for Karnataka ESDM policy:
4.1
Emerge as the leading contributor to India ' s ESDM
energy,
sector by accounting for at least 10 % of the USD $ 400 billion by 2020,
4.4
Make Karnataka the country ' s preferred destination for investments in ESDM, andGenerate at least 240,000
4.2
Generate over 20 % of the country ' s total ESDM exports
new jobs, 25 % of India ' s PhDs and 5000 patent filings
target of USD $ 80 billion in 2020,
in ESDM sector in Karnataka by 2020,
4.3
Develop core competencies in specific ESDM Verticals
4.5
Increase the Value-addition that is done in Karnataka.
Such as telecom, defense electronics, avionics and
5 To accomplish these objectives, there is a need to promote " Karnataka ESDM Companies " which shall be defined as:
5.1
Company that is registered in Karnataka and is working
specific product. The thresholds shall be increased year
in the ESDM sector.
on year in line with Deity policy.
5.2
Company that achieves a minimum of 30 % Domestic
5.3
Company that employs at least 50 % of its total
Value Addition, or as specified by Deity or DOT for any
Workforce in Karnataka.
6 The Karnataka Government has taken a holistic view of the challenges and fiscal disabilities faced by the ESDM industry and
these are addressed using a combination of promotional initiatives, post-performance incentives, fiscal measures, capital subsidies and other capacity building measures.
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