Electronics

• The state ranks 2 nd by population and 3 rd by geographical area.
• As per 2011 census, Maharashtra had a population of 112 crs having a literacy rate of 82.3% and a sex ratio of 929 (Females over per thousand males).
• It is one of the highly urbanized states of India having density of population as 365 (per sq. km).
• Maharashtra is India’s largest state economy contributing ~15% to India’s GDP.
• State is an Industrial Power House, contributing ~15.5% of India’s manufacturing, and ~15.7% of exports from the country.
• Maharashtra’s logistics & infrastructure profile includes:
  • 720 kms long coastline covered by 2 major (JNPT & MBPT) and 48 non-major ports
  • National Highways (18,366 kms) and state highways (30,465 kms); ~99.2% of villages are connected in the state
  • Railway length of ~11,631 kms capturing 9% of country’s railway network
  • 4 international and 8 domestic airports are operational along with 2 upcoming airports at Navi Mumbai and Pune (Purandar)
  • State ranks 2 nd in terms of electricity generation installed capacity
  • 2.23 MMTPA of warehousing capacity along with 1.03 MMTPA of cold storage capacity
• The state boasts 292 industrial areas, 99 co-operative industrial estates, along with dedicated sectoral parks spread over 2.5 lakh acres land. In addition, state also has dedicated wine parks, silver parks, 9 SEZs,

India

• India’s electronics sector domestic production doubled from (US$ 48Bn) in 2017 to (US$ 101Bn) in 2023, and the sector has had a high CAGR of 13% during this period.
• Finished goods segment contributed US$86bn while components contributed US$15 bn.
• Domestic production of electronics is segmented as Mobile Phones (43%), IT Hardware (5%), Consumer Electronics (12%), Auto Electronics (8%), Components (12%), Wearables & Hearables (1%), and others (19%).
• India’s share in global manufacturing output was 3.3% in 2022 with a total manufacturing output valued at USD 457bn.
• India is aiming to reach US$500 bn. in electronics production (US$350 bn. in finished goods and US$150 bn. in components) by 2030.
• India’s total exports during FY’23 was US$23.6 bn as compared to US$ FY’22 15. bn. driven by smartphone manufacturing and the PLI scheme.
• The share of electronic goods in India’s exports has more than doubled, driven by smartphones, making up nearly 40% of these exports, are primarily sent to the US, UAE, and the Netherlands.
• India has significant presence and capabilities of assemblers and OEMs in the electronics value chain. Assemblers in India include players like FOXCONN, Dixon, Amber and Pegatron. Samsung, Apple, Boat and Atomberg.
• In India, the semiconductor market is poised for significant growth, with a market size of US$24 bn. in 2022 expected to reach US$63 bn. by 2026, growing at a CAGR of 21.1% during the forecasted period.

Maharashtra

• Maharashtra contributed 18% of total electronics manufacturing production in the country as of FY’22.
• Maharashtra ranks no.4 in electronics exports from the country contributing US$3 bn of India’s total electronics exports.
• 77 companies have established their operations in the State by taking benefits from Modified Special Incentive Package Scheme (M-SIPS), Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) and Production Linked Incentive (PLI) schemes of Government of India totalling to a proposed investment of Rs. 21,092 crs.
• Maharashtra's electronics manufacturing sector has a strong presence in consumer electronics assembly and a well-developed industrial infrastructure.
• Major electronics hubs of Maharashtra include Pune, Satara, Aurangabad, Ahmednagar, Navi Mumbai, Thane, and Nashik.

Vision:

To create globally competitive Electronics System Design and Manufacturing (ESDM) industry in the state which can create huge employment opportunities for the people of our State and gain a foothold in the international market, thereby contributing to the overall economy and prosperity of the State.

Mission:

• To promote manufacturing of electronics products in the State by creating a favourable investor-friendly atmosphere.
• To proactively help in the development of a vibrant eco system of R&D, design and engineering and innovation in electronics in the State.
• To take up ESDM sector-specific skill development and training programs.
• To introduce Single Window facility for establishment of Electronics manufacturing units in the State and addressing the challenges faced by potential investors and suitably facilitating access to necessary infrastructural facilities like land, power, water, etc.
• To focus on promotion and branding Maharashtra as a leading ESDM destination.

Objective:

• To establish Maharashtra as a globally recognized HUB for ESDM industry targeted to achieve a turnover of USD 12 billion by 2020 with an investment of USD 3 billion creating additional employment generation in this sector for one lakh people.
• To increase ESDM sector’s export to USD 2 billion by 2020.
• To initiate effective measures in active collaboration with industry stakeholders to enhance the availability of skilled manpower in ESDM sector.
• To promote creation of Intellectual Property (IP) in the ESDM sector by contributing more funds to R&D for start-ups in the ESDM and Nano electronics sector.
• To create specialized Governance structure within the Government to cater to the specific needs of ESDM sector.
• To expedite adoption of best practices in management of e-waste as per the directives of Central & the State Government.

Maharashtra has been proactive in developing dedicated infrastructure for the electronics sector- Hi Tech ESDM parks at Ranjangaon and Talegaon.Plug-and-Play Infrastructure, EMC 2.0 Scheme Alignment and Ease of Doing Business initiative through Single-window clearance mechanisms like MAITRI are some of the distinct initiatives.

Key Fiscal Incentives:-

• Subsidy: Industrial Promotion Subsidy, Interest Subsidy, Power Tariff Subsidy
• Exemption: Electricity Duty, Stamp Duty, Property Tax
• For strengthening MSMEs: Subsidy on capital equipment for technology upgradation and for cleaner production measures, Assistance in Patent Registration and industry standard Quality Certifications, Assistance for credit rating
• Separate investment subsidy package for manufacture of Lithium-ion battery, LED, TFT industries and other thrust areas/products as identified by the state. Special Goods Declaration: Electronic products for data communication and IT products to be taxed at the lowest VAT rate.
• Assistance to Greenfield and Brownfield EMCs Under Electronics Manufacturing Cluster (EMC) scheme of Government of India
• Special Incentive Package for Anchor Units
• Support to R&D institutions / Testing Facilities / Incubation and Innovation centres.
• Market Development Support
• Electronics Development Fund (initial corpus of Rs. 50 crores)

Key Non-Fiscal Incentives:-

• Uninterrupted 24×7 quality power by providing dedicated additional feeders.
• Human Resource Development
• Initiatives for simplification of relevant legislations : Relaxations under the Shops and Establishment Act, Contract Labour Act Relaxation, Exemption from physical records for attendance and salary and Option for self-certification and consolidated annual returns under 13 Labour Acts
• Single window clearance system
• Essential Service Status