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Strategic Roadmap for Development of ESDM Sector in Odisha

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Strategic Roadmap for Development of ESDM Sector in Odisha Strategic Roadmap for Development of ESDM Sector in Odisha Department of Information Technology Government of Odisha Strategic Roadmap for Development of ESDM Sector in Odisha Report prepared by: 1 Table of contents 1. Preface ..................................................................................................................................................................... 3 2. Approach and methodology ........................................................................................................................... 4 3. Executive summary ............................................................................................................................................ 5 4. Module I – ESDM industry study and benchmarking ........................................................................ 13 4.1. Introduction to ESDM industry ................................................................................................................... 13 4.1.1. Definitions ............................................................................................................................................................ 13 4.1.2. Global electronics industry overview ...................................................................................................... 14 4.1.3. Indian ESDM industry overview ................................................................................................................. 16 4.1.4. Growth drivers .................................................................................................................................................... 18 4.1.5. Key segments within ESDM industry ....................................................................................................... 20 4.2. Benchmarking of government policies and best practices from ESDM clusters ................ 28 4.2.1. Government policy initiatives to boost manufacturing in India ................................................... 28 4.2.2. Benchmarking and best practices – state government policies for ESDM sector .............. 33 4.2.3. Leading practices from other economies .............................................................................................. 57 4.2.4. Case studies on how other manufacturing locales have been created – global .................. 68 4.2.5. Case studies on how other manufacturing locales have been created – India ..................... 72 5. Module II – Location analysis: Odisha as an ESDM destination .................................................. 75 5.1. Availability of industry specific infrastructure for ESDM/Electronics sector ........................ 75 5.1.1. Availability of water resources .................................................................................................................... 75 5.1.2. Availability of energy resources ................................................................................................................. 77 5.1.3. Ports ........................................................................................................................................................................ 79 5.1.4. Airports .................................................................................................................................................................. 81 5.1.5. Railways ................................................................................................................................................................ 81 5.1.6. Roads ..................................................................................................................................................................... 81 5.1.7. Availability of office space ............................................................................................................................ 82 5.2. Talent availability............................................................................................................................................... 83 5.3. Availability of mineral resources ............................................................................................................... 85 5.4. Odisha’s ESDM industry – Analysis of Advantages & Challenges ............................................. 87 5.4.1. Areas of competitive advantage for Odisha .......................................................................................... 87 5.4.2. Key challenges for ESDM industry growth in the State ................................................................... 91 6. Module III – Strategic roadmap for ESDM sector development in Odisha .............................. 94 6.1. Vision ...................................................................................................................................................................... 94 6.2. Target segments, product verticals and manufacturing horizontals ......................................... 95 6.3. Investment required ....................................................................................................................................... 107 6.4. Resources required: ....................................................................................................................................... 111 6.5. Location assessment – ESDM cluster development in Odisha................................................... 114 6.6. Cluster-wise resource requirement and gap analysis: ................................................................... 119 6.7. Govt. initiatives to bridge the gaps: ........................................................................................................ 123 7. Appendix ............................................................................................................................................................. 131 7.1. Qualitative rating table for analysis of products on various parameters ............................... 131 7.2. Indicative list of players for each product ........................................................................................... 132 7.3. River map of Odisha ...................................................................................................................................... 133 2 1. Preface Since its inception in 2004, the India Electronics & Semiconductor Association (IESA) has played an important role in facilitating the growth of electronics and semiconductor ecosystem in the country. Industry research has been one of the cornerstones of IESA’s activities. IESA has prepared the Strategic Roadmap for Development of ESDM industry in the state of Odisha in collaboration with Ernst & Young (India) and with the active participation and support of Department of Information Technology, Government of Odisha and other agencies in the state. The present report is divided into four sections — the industry overview & analysis, benchmarking of policy initiatives and clusters, SWOT Analysis for the state, and, recommended strategic roadmap. Industry analysis focuses on the global and the Indian industry, its key segments and the growth drivers. The policy initiatives of the Government of India are covered followed by the benchmarking of the policies announced by various states. The creation of ESDM clusters in leading countries and in the country has been presented. A comprehensive analysis of the state of Odisha as the ESDM destination on important parameters like infrastructure, talent, supporting ecosystem, its competitive advantage and challenges is carried out. Finally, based on the findings of the above sections, Strategic Roadmap for the development of the ESDM sector in the state is presented. It recommends the industry segment/verticals, products and horizontals of focus, projects the revenue and employment generation over the next 10 years, and, the corresponding investment, supporting infrastructure and manpower requirements to realize the projected revenues. The Roadmap also maps out the prospective locations in the state for ESDM activity. It also articulates the policy initiatives including incentives required for the growth of the ESDM industry in the state. The various stakeholders including the Government and industry, together, can ensure that the ESDM sector grows in Odisha and the state continues to benefit, grow and prosper from a sector that is marked by innovation and a desire for world-class performance. The concerted efforts of the officials from the Department of IT (DIT), Government of Odisha and STPI, Bhubaneswar are greatly appreciated, and, would like to acknowledge their support at every stage to prepare the report. 3 2. Approach and methodology IESA engaged Ernst and Young to carry out a study on the development of ESDM industry in the state of Odisha. The aim of the study was to focus on ESDM industry in Odisha, its current state and a future roadmap. As part of the study, IESA and EY contacted various departments from the Government of Odisha (GoO) for state specific data collection. In addition, EY also interviewed management representatives from various industry players and industry associations to capture their views on the industry and ways to build ESDM ecosystem in Odisha. IESA along with EY conducted workshops with government departments and industry to capture their views and any specific issues that they wanted to highlight. EY also carried out extensive secondary research to capture ESDM specific inputs for the purpose of creating
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