The Rise of Noida as an Electronics Manufacturing Hub

Noida, short for New Okhla Industrial Development Authority, is a planned city located in the Gautam Buddh Nagar district of Uttar Pradesh, just southeast of Delhi. Over the past two decades, Noida has transformed from a quiet satellite town into a bustling industrial and technological center, with a particular focus on electronics manufacturing.

The city’s journey towards becoming an electronics manufacturing hub began in the early 2000s when several leading Indian and international companies set up their production facilities in Noida. Some of the early entrants included:

• LG Electronics India
• Samsung India Electronics
• Oppo Mobiles India
• Vivo Mobile India

These companies were attracted by Noida’s strategic location, well-developed infrastructure, and the availability of skilled labor. The Uttar Pradesh government also offered various incentives and subsidies to encourage investment in the region.

Key Factors Contributing to Noida’s Success

1. Strategic Location: Noida’s proximity to the national capital, Delhi, provides easy access to key decision-makers, financial institutions, and a large consumer market. The city is well-connected by road, rail, and air, making it an ideal location for logistics and distribution.

2. Infrastructure: Noida boasts of world-class infrastructure, including reliable power supply, water, and telecommunications networks. The city also has a robust road network and is connected to major highways, ensuring smooth transportation of goods.

3. Skilled Workforce: Uttar Pradesh has a large pool of skilled and semi-skilled workers, many of whom have experience in the electronics industry. The state government has also established various training institutes and skill development centers to nurture talent and meet the growing demand for skilled labor.

4. Government Support: The Uttar Pradesh government has been proactive in attracting investments in the electronics sector. The state offers various incentives, such as capital subsidies, interest subsidies, and tax exemptions, to companies setting up manufacturing units in the region. The government has also established dedicated industrial areas and parks to facilitate the growth of the electronics industry.

Major Players in Noida’s Electronics Manufacturing Ecosystem

Noida has attracted investments from several leading international and domestic electronics companies. Some of the major players in the city’s electronics manufacturing ecosystem include:

Company	Product Category	Investment (USD Million)	Employment
Samsung India Electronics	Smartphones, TVs, Home Appliances	2,500	70,000
LG Electronics India	TVs, Home Appliances, Air Conditioners	1,500	25,000
Oppo Mobiles India	Smartphones	1,500	10,000
Vivo Mobile India	Smartphones	1,000	7,500
Lava International	Smartphones, Feature Phones	100	5,000

These companies have made significant investments in setting up state-of-the-art manufacturing facilities in Noida, generating employment for thousands of people and contributing to the region’s economic growth.

Samsung India Electronics

Samsung India Electronics, a subsidiary of the South Korean electronics giant Samsung, has been a key player in Noida’s electronics manufacturing landscape since the early 2000s. The company has set up one of its largest manufacturing facilities in the world in Noida, spanning over 129 acres and employing more than 70,000 people.

The Noida factory produces a wide range of products, including smartphones, televisions, refrigerators, and washing machines, catering to both the domestic and export markets. In 2018, Samsung announced plans to invest an additional USD 2.5 billion in the Noida facility to expand its production capacity and introduce new product lines.

LG Electronics India

LG Electronics India, a wholly-owned subsidiary of the South Korean conglomerate LG Corporation, has been operating in Noida since 1997. The company has a large manufacturing complex in the city, spread over 50 acres, which produces televisions, air conditioners, and home appliances.

LG’s Noida facility has an annual production capacity of 1.5 million units of refrigerators, 1 million units of televisions, and 0.5 million units of air conditioners. The company has invested over USD 1.5 billion in the facility and employs around 25,000 people.

Oppo Mobiles India

Oppo Mobiles India, a subsidiary of the Chinese smartphone maker Oppo, set up its manufacturing unit in Noida in 2016. The company has invested over USD 1.5 billion in the facility, which has an annual production capacity of 50 million smartphones.

Oppo’s Noida factory is spread over 110 acres and employs around 10,000 people. The company has also set up a research and development center in Hyderabad, focusing on developing cutting-edge smartphone technologies for the Indian market.

Vivo Mobile India

Vivo Mobile India, another Chinese smartphone manufacturer, established its production facility in Noida in 2015. The company has invested over USD 1 billion in the facility, which has an annual production capacity of 33.4 million smartphones.

Vivo’s Noida factory is spread over 169 acres and employs around 7,500 people. The company has also set up a design center in Noida, which focuses on developing smartphones tailored to the needs of Indian consumers.

Government Initiatives to Boost Electronics Manufacturing in Noida

The Uttar Pradesh government has been actively promoting electronics manufacturing in Noida through various initiatives and policies. Some of the key measures undertaken by the government include:

1. Uttar Pradesh Electronics Manufacturing Policy: In 2017, the state government launched the Uttar Pradesh Electronics Manufacturing Policy, which aims to attract investments worth USD 5 billion and create 500,000 jobs in the electronics sector by 2022. The policy offers various incentives, such as capital subsidies, interest subsidies, and tax exemptions, to companies setting up manufacturing units in the state.

2. Noida Electronics Manufacturing Cluster: The government has established the Noida Electronics Manufacturing Cluster (EMC) to provide a conducive ecosystem for electronics manufacturing. The EMC offers state-of-the-art infrastructure, including ready-to-use manufacturing sheds, testing and certification facilities, and common facility centers.

3. Skill Development: The state government has set up various skill development centers and training institutes to nurture talent for the electronics industry. These include the Institute of Electronics and Telecommunication Engineering (IETE) in Noida, which offers training programs in embedded systems, VLSI design, and IoT.

4. Single-Window Clearance: To facilitate ease of doing business, the government has introduced a single-window clearance system for setting up electronics manufacturing units in the state. This system streamlines the process of obtaining necessary approvals and clearances, reducing the time and effort required by companies.

Future Prospects for Electronics Manufacturing in Noida

Noida’s electronics manufacturing sector is poised for significant growth in the coming years, driven by the increasing demand for electronic products in the domestic and international markets. The Indian government’s focus on promoting domestic manufacturing through initiatives like “Make in India” and “Digital India” is expected to provide further impetus to the industry.

According to a report by the India Electronics and Semiconductor Association (IESA), the Indian electronics system design and manufacturing (ESDM) market is expected to grow at a CAGR of 16.1% to reach USD 220 billion by 2025. Noida, with its established ecosystem and growing investments, is well-positioned to capture a significant share of this market.

Several new investments and expansions are already in the pipeline. For example:

• In 2019, Apple supplier Wistron Corp announced plans to invest USD 1 billion in its Noida facility to expand its production capacity for iPhones.
• In 2020, Pegatron, another Apple supplier, registered its subsidiary in India and is reportedly planning to set up a manufacturing unit in Noida.
• Domestic companies like Dixon Technologies and Optiemus Infracom are also expanding their presence in Noida, focusing on contract manufacturing for global brands.

As more companies set up their manufacturing bases in Noida, the city is expected to strengthen its position as the hub of electronics manufacturing in India, generating employment, attracting investments, and contributing to the country’s economic growth.

Frequently Asked Questions (FAQ)

1. Q: Why is Noida considered the hub of electronics manufacturing in India?
   A: Noida has emerged as the hub of electronics manufacturing in India due to its strategic location, well-developed infrastructure, skilled workforce, and favorable government policies. The city has attracted significant investments from leading international and domestic electronics companies, who have set up large-scale manufacturing facilities in the region.

2. Q: What are some of the major electronics companies that have manufacturing units in Noida?
   A: Some of the major electronics companies with manufacturing units in Noida include Samsung India Electronics, LG Electronics India, Oppo Mobiles India, Vivo Mobile India, and Lava International.

3. Q: What initiatives has the Uttar Pradesh government taken to promote electronics manufacturing in Noida?
   A: The Uttar Pradesh government has launched the Uttar Pradesh Electronics Manufacturing Policy, which offers various incentives to companies setting up manufacturing units in the state. The government has also established the Noida Electronics Manufacturing Cluster (EMC) and set up skill development centers to nurture talent for the industry.

4. Q: What is the future outlook for electronics manufacturing in Noida?
   A: Noida’s electronics manufacturing sector is expected to witness significant growth in the coming years, driven by the increasing demand for electronic products and the Indian government’s focus on promoting domestic manufacturing. Several new investments and expansions are already in the pipeline, which is expected to strengthen Noida’s position as the hub of electronics manufacturing in India.

5. Q: How is the growth of electronics manufacturing in Noida contributing to India’s economic development?
   A: The growth of electronics manufacturing in Noida is generating employment, attracting investments, and contributing to India’s economic growth. As more companies set up their manufacturing bases in the city, it is creating a ripple effect on the local economy, fostering the growth of ancillary industries and services. Additionally, the increased domestic production of electronic goods is helping to reduce India’s dependence on imports and strengthen its position in the global electronics market.