Karnataka IT Minister Priyank Kharge has requested that the centre improve fiscal incentives to help the state’s electronics and semiconductor sectors.
Kharge submitted a memorandum to Union IT Minister Ashwini Vaishnaw on June 28.
The state is in search of funding help to make use of in direction of infrastructure upgradation, growing trade particular skilling programmes, bridging the hole between ability necessities and the disposable expertise pool current within the state, and conducting analysis and improvement initiatives, amongst others.
“Given the national-level focus that has been supplied to the sector, Karnataka is engaged on rising its competitiveness and continues to be the frontrunner in growing a conducive ecosystem for electronics and semiconductor firms. Whereas the state places in its efforts, I want to push ahead a request to you for understanding the chance for the federal government of India to additionally improve its funding help in direction of Karnataka,” Kharge wrote.
The memorandum highlighted Karnataka’s vital efforts within the digital and semiconductor sectors, positioning the state as a frontrunner in India’s electronics development story. The state boasts the very best proportion of revolutionary firms, accounting for 46% of the nationwide share and contributing 10% of India’s industrial output.
The state additionally exports $4.52 billion value of electronics, rating third within the nation. Karnataka is dwelling to greater than 300 export-oriented manufacturing items. It’s India’s largest chip design hub, housing over 100 fabless chip design homes, and the nation’s main producer of aerospace and protection gear, the memorandum stated.
“I urge you to contemplate my request and collectively strategize our proactive steps to boost fiscal help from the Authorities of India,” Kharge stated. “This strategic intervention won’t solely foster development and innovation inside the sector but additionally contribute considerably to job creation and financial prosperity within the state and the nation at massive.”
The Authorities of Karnataka has been offering fiscal incentives, production-linked incentives, and infrastructure help to propel the electronics and semiconductor industries within the state, Kharge famous.
Karnataka has carried out insurance policies to bolster electronics manufacturing development. Initiatives just like the Particular Incentives Scheme for ESDM Sector 2020–2025 present advantages comparable to capital subsidies, payment reimbursement, and production-linked incentives. The state additionally targets ultra-mega investments and promotes specialised clusters comparable to aerospace, client electronics, and cell phone manufacturing throughout completely different areas. Moreover, Karnataka goals to boost its ecosystem with designated industrial areas and Centres of Excellence to help startups and foster innovation in numerous know-how domains, the minister wrote within the memorandum.
