UP eyeing $5 billion investment in electronics manufacturing

Virendra Singh Rawat

Lucknow, Aug 19, 2020

Armed with a new electronic manufacturing policy, the Uttar Pradesh government is eyeing more than $5 billion investment over the next five years.

The Yogi Adityanath government is keen to wooing global corporations, who are mulling to shift their manufacturing or vendors’ bases outside China in the wake of covid-19 outbreak and the stiffening US-China trade war.

In this backdrop, the state cabinet on Tuesday cleared the UP Electronic Manufacturing Policy 2020, which seeks to position UP as a global production hub and attract international investors.

According to the document, the policy aimed at attracting investment of Rs 40,000 crore, equivalent to more than $5 billion, in five years, while generating 400,000 direct employment opportunities.

The new policy replaces the erstwhile policy, which was promulgated in 2017 and was largely targetted at the Noida, Greater Noida and Yamuna Expressway regions. The new policy envisages setting up of the electronics manufacturing value chain across the state.

At present, the state accounts for 60 per cent of the domestic mobile phone production, especially in the national capital region (NCR).

To address regional imbalance, the policy promises to double the rate of land subsidy for investment in the backward Bundelkhand and Purvanchal regions for electronics manufacturing.

To promote MSMEs, the government will encourage development of rental facilities on ‘Plug and Play’ model through the public private partnership (PPP).