Rajasthan has immense potential in electronics manufacturing: Ashwini Vaishnaw
Jaipur, May 23
Union Minister for Electronics and Information Technology Ashwini Vaishnaw said on Saturday that Rajasthan has immense potential to become a major hub for electronics manufacturing, highlighting the Centre's push to expand the sector under Prime Minister Narendra Modi's leadership.
Addressing industry representatives, investors and experts during a dialogue on the electronics and semiconductor sectors at the Chief Minister's Office in Jaipur, Union Minister Vaishnaw noted that India is rapidly advancing in electronics manufacturing and urged investors to confidently establish units in Rajasthan.
He said the Centre has paved the way for 450 factories in the electronics sector over the past two years.
Under the Electronic Components Manufacturing Scheme (ECMS), approvals for 75 factories have been granted within a year, while the Union Cabinet has also increased budgetary support for the scheme.
Union Minister Vaishnaw assured investors that the Centre and the state government would provide full support to promote the sector and noted that electronics manufacturing would generate large-scale employment opportunities.
Chief Minister Bhajan Lal Sharma, who attended the event alongside the Union Minister Vaishnaw, said India has joined the select group of nations capable of indigenous semiconductor production.
He highlighted that the India Semiconductor Mission is moving ahead at a rapid pace with an incentive package exceeding Rs 76,000 crore.
The Chief Minister said semiconductor chips have become crucial across sectors ranging from telecom and consumer electronics to defence and space technology.
He added that the future would belong to nations and states developing strong semiconductor capabilities.
Chief Minister Sharma said Rajasthan's first semiconductor cluster was inaugurated this month in Bhiwadi. Spread across 50 acres, the facility is expected to manufacture nearly six crore chips annually and has already attracted investment proposals worth more than Rs 1,200 crore from 20 companies.
Highlighting Rajasthan's advantages, the Chief Minister added that the state's "Triple-S Factor" -- Silica, Skill and Solar -- would emerge as a key strength for the semiconductor industry.
He said the Rajasthan Semiconductor Policy and Rajasthan Industrial Development Policy have been introduced to create a robust ecosystem, offering special incentives for semiconductor, data centre and defence manufacturing projects.
Under the Rajasthan Investment Promotion Scheme (RIPS) 2024, industries are receiving financial and infrastructure support, including additional capital subsidies for projects approved under the India Semiconductor Mission and interest subvention of up to five per cent on term loans.
The Chief Minister announced that work has begun to develop the Jodhpur-Pali-Marwar Industrial Area (JPMIA) and the Kakani region as the "Silicon Valley of Rajasthan".
According to CM Sharma, the region is being developed as an integrated industrial ecosystem for chip design, electronics manufacturing and system development.
He noted that Rajasthan's connectivity through the Delhi-Mumbai Industrial Corridor and proximity to industrial hubs such as Bhiwadi, Neemrana and Kotputli provide strong logistics and supply-chain advantages.
He added that the state's Single Window Clearance System has been strengthened, enabling digital and time-bound approvals, including land allotment and project clearances.
Inviting investors to Rajasthan, CM Sharma said the state aims to build a $350-billion economy, with electronics and semiconductors expected to play a leading role.
Industry and Commerce Minister Rajyavardhan Rathore said semiconductors have become the foundation of global economic strength and digital self-reliance.
He said the India Semiconductor Mission is progressing in "mission mode" and Rajasthan is among the most suitable states for such investments.
Minister Rathore added that the state government is offering electricity duty exemptions, stamp duty relief, capital subsidies, interest subvention and green initiative reimbursements for semiconductor-related projects, including OSAT and ATMP facilities.
"Customised incentive packages are also available for investments exceeding Rs 500 crore, while land allotment procedures have been made more transparent and efficient," he said.
— IANS
Reader Comments
450 factories approved in two years is impressive, but we need to ensure these factories don't end up polluting Rajasthan's environment. The state already faces water scarcity. Hope they implement strict green norms alongside these incentives.
As an American working in electronics, I've seen how China dominated this space. India's push with schemes like ECMS and semiconductor clusters is a smart move. Rajasthan's proximity to Delhi-Mumbai corridor makes it a logical choice. Let's see if execution matches ambition.
Loved the vision of making Jodhpur-Pali-Marwar area a 'Silicon Valley of Rajasthan.' We have the land and the will. But ground reality in Rajasthan is different — we need reliable power supply and skilled workforce first. Hope the govt walks the talk. 🤞
Single Window Clearance is great for big investors, but what about small and medium enterprises in Rajasthan? Many local businesses can contribute to the electronics supply chain if procedural hurdles are reduced. Hope the ₹1,200 crore proposals actually benefit local suppliers.
Impressive numbers — 6 crore chips annually from Bhiwadi alone. But semiconductor manufacturing is highly capital-intensive and requires consistent water and power. Rajasthan's arid climate could be a challenge. Hope they've planned for sustainable water use.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.