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Emerging as a threat to China, UP completes its 5-year target of electronic manufacturing in just 3 years

TFIPOST News Desk
by TFIPOST News Desk
17 January 2021
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The state of Uttar Pradesh is touching new milestones in terms of economic growth under the leadership of Yogi Adityanath. As per a report by the Economic Times, UP has achieved the target set for five years in electronics manufacturing in just three years. As per the report, the state has received an investment of 20,000 crore rupees in the last three years in the electronics sector and generated employment for three lakh people. 

“We had to achieve the target of getting an investment of Rs 20,000 crore and employment to three lakh persons by 2022 but achieved it two years earlier with as many as 30 investors ready to invest in the sector due to the policies of the state,” said Alok Tandon, industrial infrastructure and industrial development commissioner.

In the last few years, Noida, Greater Noida, and Yamuna Expressway have emerged as electronics manufacturing hubs. Moreover, since the outbreak of the Coronavirus pandemic, a large number of companies are shifting their supply chains out of China and looking at UP as an alternative. 

Companies from the United States, the United Kingdom, Japan, Canada, Germany and South Korea have proposed investment worth 45,000 crore rupees which will create 1.35 lakh jobs in UP. The government is arranging land for these companies and many of them have already been allotted plots required to set up factories and offices.

“In 6 months, 326 plots have been allotted for investment projects worth Rs 6,700 crore. This has attracted investors from all over the world to UP,” said The Infrastructure & Industrial Development Commissioner (IIDC) Alok Tandon.

With a population of 22 crores and young demography, UP has the existing capacity to replace China as the ‘factory of the world’. With the outbreak of Coronavirus and anger towards China, the companies of developed nations that have manufacturing units in China are looking for other avenues.

Read More: It’s Uttar Pradesh vs China now as foreign companies dump Xi Jinping for Yogi

Compared to the Chinese workforce which is now old and costly, the cost of labour is very cheap in UP and also, very young with a median age of 21. On the other hand, the median age of China is 38 years while the cost of labour is 10 times more than that of Uttar Pradesh. Unfortunately, the state did not have an investment-friendly government before but with the arrival of Yogi, things have been moving rapidly.

The UP government has shown a proactive approach in the last few months to attract companies seeking an alternative to China and this has resulted in ongoing talks with many foreign companies over shifting manufacturing units to the state, some of which have already pledged investment.

South Korean electronics majors agreed to set up manufacturing units in UP and state officials held a webinar with 100 US firms like Adobe, Boston Scientific, and UPS to shift their units from Shanghai to Noida, which is already a known popular IT hub.

German footwear brand, Von Wellx, has decided to move its factory operations from China to Agra in UP. The company has more than 10 crore customers in more than 80 countries.

UP is one of the most efficiently administered parts of the country and the ‘rule of law’ prevails in the state. Therefore, the industrialists have no qualms about over-investing in the state, which is not just being governed efficiently but the government is also providing various incentives for investment. The rise of Uttar Pradesh as an alternative to China as the manufacturing hub for electronics would accelerate the exodus of companies from the Communist country and prove helpful to the Modi government’s ‘Make In India’ scheme. 

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