New Script

Uttar Pradesh, the land of ancient history and cultural heritage is one of the largest states of India,
third largest economy and the largest consumer market with a large population of 25 crore.

Under the visionary leadership of Shi Yogi Adityanath Ji, Uttar Pradesh is rapidly moving towards
industrialization through several policy initiatives taken by the Government in past 5 years.

Government spending in Mega projects such as Airports, Metro, Expressways, dedicated freight
corridors, IT Parks, and electronics manufacturing clusters, the state infrastructure has taken up an
upward trajectory towards the One trillion-dollar economy.

IT & Electronics sector has made a significant contribution to State’s economy through various
policies being implemented under the Department of IT & Electronics such as:

▪ IT Policy 2017
▪ Electronics Manufacturing Policy 2020
▪ Start-up Policy 2020.
▪ and Data Center Policy 2021

Electronics hardware industry is the world’s largest and fastest growing industry and is increasingly
finding applications in all sectors of the economy.

India’s Electronics System Design & Manufacturing (ESDM) base is the second largest in the world
and is growing at the second-fastest rate among the 17 leading economies.

The domestic demand for electronics hardware is expected to rise rapidly to about USD 400 bn by
2025.

The Government attaches high priority to electronics hardware manufacturing, and it is one of the
important pillars of both “Make in India” and “Digital India” programme of Govt of India.

To accelerate the Electronics manufacturing ecosystem in the state, UP Electronics Manufacturing

Policy launched in year 2017 successfully achieved its target of 20,000 crore rupees of investment
within the third year of policy launch.

Original Equipment and Component manufacturers from India and abroad have created an enviable
ecosystem of electronics manufacturing in the state.

Notable electronics players operating in UP are:

▪ Samsung
▪ Oppo
▪ Vivo
▪ Lava
▪ and Haier

A new electronics manufacturing policy was launched in year 2020 by doubling its target of
investment to 40,000 Crores rupees.
Policy offers various financial and non-financial incentives:

▪ Land Subsidy of 25%

▪ extended to 50% for Purvanchal and Bundelkhand regions
▪ 100% stamp duty exemption
▪ capital subsidy up to 15%
▪ Interest subsidy up to 5%
▪ 25% of lease rentals charges for Industrial sheds/ Industrial Building
▪ 3.0 + 1.0 (Purchasable) floor area ratio (FAR)
▪ 50% Logistics Subsidy on transportation cost incurred on import of manufacturing
equipment
▪ 5% additional capital subsidy shall be provided to the investor acting as an Anchor unit
▪ 5% additional capital subsidy for investor applying under the focus areas like Defense
Electronics, strategic Electronics, Robotics etc.
▪ Investors setting up units for remanufacturing, repair, or refurbishment of Electronics
products in the state will be eligible for all incentives
▪ Capacity expansion/ diversification/ Technology upgradation will be covered under the
policy
Government of India is working with a vision to build a vibrant semiconductor and display ecosystem
to enable India’s emergence as a global hub for electronics manufacturing and design.

With the vision to make UP an attractive destination for global semiconductor units, special
incentives over and above GoI’s benefits are proposed under the new electronics manufacturing
policy

▪ 50% additional Capital Subsidy on the capital subsidy approved by GOI

▪ Land subsidy of 75% for first 200 acres of land
▪ Extended to 30% subsidy on additional purchase of land
▪ 100% stamp duty exemption
▪ Power tariff as per industrial rates
▪ 100% exemption on electricity duty for a period of 20 years
▪ Dual power grid network shall be provided
▪ 50% of the cost of ETP
▪ Further relaxation can be considered on Case-to- Case basis for FAB units including land,
electricity, water, infrastructure, capital sharing, fiscal and non-fiscal incentives etc.

The Government will support R&D centers & Design Centers with the financial support up to 50% of
the project cost

Policy envisages to create world class infrastructure in the form of Center of Excellence (CoE) to
promote research, innovation and entrepreneurship and startup culture in the ESDM sector.
Government will support CoEs by financing up to 50% of the total CoE project cost

▪ In the series of Center of Excellences, first such CoE has been established at CDAC Noida to
work on Lithium ion battery technology.
▪ Second CoE in the field of medical electronics has been set up at SGPGI Lucknow with the
help of Software Technology Parks of India.
 ▪ Third, CoE in Artificial Intelligence has been set up at IIT Kanpur (Noida) campus.

The state has been rapidly making its mark in the emerging technologies sector and looking to
harness its demographic dividend to achieve 1 trillion US dollar economy.