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View from India: Karnataka promotes ESDM sector; Madhya Pradesh focuses on IT investment

The states of Karnataka and Madhya Pradesh have been in the spotlight at the 13th Edition of the India Electronics and Semiconductor Association’s (IESA) Vision Summit.

In its effort to promote the Electronic System Design and Manufacturing (ESDM) industry, the government of Karnataka (GoK) plans to encourage innovation across the state through its programme Evevate100. Madhya Pradesh plans to position itself as an investment hub with its recent IT Parks and ongoing efforts to strengthen its digital infrastructure.

At the Vision Summit it became clear that the aim is to boost the semiconductor fabless ecosystem in the country. “We are witnessing the rise of a new India with a stable government clearing policy logjams, taking bold decisions and ambitious targets. With digital as the growth hack and aggressive engagement from the government's Make in India campaign, the ESDM industry will benefit and is projected to see investment proposals over $1.5bn over the next two years,” said Ashwini K. Aggarwal, chairman, IESA addressing the gathering at the Vision Summit.

It was also indicated that the time has come to build the future of design-led manufacturing, while the fabless report highlighted the opportunities for the Indian fabless ecosystem.

Apart from the obvious like wildlife sanctuaries, monuments and exquisitely carved temples, what Madhya Pradesh offers are its bountiful opportunities that make it a potential investment destination. That’s because Madhya Pradesh is investing heavily in public service delivery by scaling up the IT infrastructure. Some of its significant IT initiatives include a State Driven Centre (SDC) and State Wide Area Network (SWAN). Then there’s the MPOnline portal, which is a joint venture between Tata Consultancy Services Limited (TCS) and the Government of Madhya Pradesh (GoMP). The portal serves to be a one-stop platform for educational and citizen-centric public services, which can be accessed from anywhere, at any time. In order to create employment and improve the education quotient, virtual classes are being conducted for the rural youth.

Various cities of Madhya Pradesh are opening up channels for IT investments. Madhya Pradesh State Spatial Data Infrastructure (MPSSDI) Policy has been unveiled, from which aspiring investors can get a glimpse of the state spatial data infrastructure through satellite imagery. Coming to real estate, there is a concession on the land premium cost of up to 75 per cent. As for land bank, Gwalior has a land pool spanning across 61 acres, which has all the requirements for establishing an IT Park. Indore is already home to IT Parks. It’s also home to clusters that focus on verticals like auto and engineering and textile. Indore is also credited for housing one of Asia’s largest renewable energy plants. Greenfield electronics manufacturing clusters are present in cities like Bhopal, Indore, Gwalior and Jabalpur.

At a glance, Madhya Pradesh has various facets that can probably make it an investor’s choice. The view is supported by the fact that it offers low-cost labour, along with low-cost capital expenditure and operating expenses. Other value propositions point to the availability of quality manpower thanks to skilled labour and vocational training.

The IESA, the premier trade body, representing the Indian electronic system design and manufacturing space in collaboration with MarketsAndMarkets launched an industry report on the Indian semiconductor fabless startup ecosystem at this year’s Vision Summit.

“Keeping with the IESA Vision Summit theme on Resurgent India Electronics, Entrepreneurship and Economy, said Priyank M Kharge, Minister for IT, BT and S&T, and added, “Bangalore has emerged as the hub in the country providing for innovation, entrepreneurship and invention. We have put in place policies and framework to ensure that the ecosystem is favourable to more partnerships, access to funds, ease of business and networking in the domestic and international market and more importantly, inculcating skill sets for the future through our Centre of Excellences within the city.”

With assistance from IESA, GoK is keen to inculcate a fabless ecosystem to promote the ESDM sector and encourage manufacturing not only in the state but in the rest of the country as well.

The Vision Summit is a global leadership conclave for the Electronics System Design & Manufacturing (ESDM) industry and this year the focus is on Resurgent India: Electronics, Entrepreneurship and Economy.

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