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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