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Gujarat, A New Manufacturing Hub

Leaving behind regions like Himachal Pradesh and Delhi-NCR (Greater Noida), Gujarat is slowly becoming the preferred destination of electronics and appliances manufacturers. Skilled labor is cheaper and better road infrastructure and port connectivity ensures that manufacturing and logistics costs are lower.

Voltbek Home Appliances has commenced its first manufacturing facility in India. Spread over 60 acres in Sanand, an industrial hub near Ahmedabad, Gujarat, the factory will manufacture home appliances that include refrigerators and washing machines. Players like Polycab already have a manufacturing facility in Halol, Gujarat, for the wires and cables business. Similarly, Crompton Greaves Consumer also has manufacturing presence in Gujarat for products like lighting.

In the context of National Electronics Policy and associated emphasis on setting up of electronics manufacturing industry in the country, the Government of Gujarat, with a view to providing focused attention on the subject, had released a five-year Electronics Policy for the State of Gujarat in 2014. The state of Gujarat had set an aim to be a globally recognized hub for the electronic-system design and manufacturing, with a turnover of USD 16 billion by 2021 and an investment of USD 6 billion to create employment opportunities for 5 lakh people by 2021.

The government continues to facilitate the setting up of greenfield and brownfield electronics manufacturing clusters (EMCs), with world-class logistics and infrastructure and business-friendly facilities with good sea, air, and inland connectivity.

The state government has enabled companies to develop land on a cost-effective basis for manufacturers. Power is also cheaper and it is uninterrupted. Depending on the type of industry and capital invested, tax benefits in the form of reimbursements are also offered to the companies.

The Gujarat Industrial Development Corporation has played a key role in helping companies set up manufacturing units in the special economic zones (SEZs) as well as special investment regions. Gujarat has five SEZs, two in Gandhinagar (electronics and IT), one each in Vadodara (bio-technology), Surat (apparel), and Ahmedabad (apparel). These SEZs offer tax concessions for setting up plants in the area.

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