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Geographical spread of Electronics Industry


Upto 1971, the Indian electronics industry had grown up around three major centres, Bangalore, Mumbai/ Pune, and Delhi. Bangalore was the site of major public sector corporations in defence and telecommunications. Mumbai and Pune were the traditional locations of private sector, largely foreign-owned firms, established in the late forties to early fifties. The Delhi region became important in the sixties with the emergence of a dynamic Small Scale Industry sector making radios, components for radios, and later black and white TVs.

In the seventies, to encourage geographic distribution of the electronics industry, new public sector plants at various new locations were setup. The states were encouraged to establish electronics development corporations to help in promotion and development of electronics in respective states. To stimulate and increase the growth rate of the electronics industry, many of the states are now providing special incentives like sales tax concessions, creation of separate industrial areas for electronics, subsidy for setting up units in backward areas, financial participation either as joint sector or assisted sector, etc. This action, combined with the dispersion of additional public sector unit, has encouraged the emergence of several secondary electronics centres.

Till 1987, Maharashtra occupied the top position, followed by Karnataka and Delhi (except in 1985 where Karnataka was at the top). Due to rapid growth of electronic industry in Uttar Pradesh, it occupied top position in 1988, 1989 and 1991, but from 1992 to 1995 Karnataka again emerged as the leader. From 1998, Uttar Pradesh occupied the top position. Delhi occupies a significant place due to large concentration of small scale units making consumer electronic products and computers.

Distribution Pattern:

59% of the production is accounted for by Maharashtra, Karnataka and Uttar Pradesh alone. However, Karnataka and Maharashtra had over 75 percent share in 1971. Bulk of the components produced are contributed by Uttar Pradesh, Maharashtra, Karnataka and Punjab, while consumer electronics production is by Maharashtra and Delhi.

TOP 5 states in electronics production:

Rank 1990 1999
1 Karnataka Uttar Pradesh
2 Uttar Pradesh Maharashtra
3 Maharashtra Karnataka
4 Delhi Delhi
5 Andhra Pradesh Tamil Nadu

Regional Distribution:

North accounts for about 37 percent of production, mostly in Delhi and vicinity. The East is underdeveloped relative to its population. The West accounts for 25 percent of electronics production mostly in Maharashtra ( Mumbai and Pune). In the South primarily Bangalore, which is the site of major public sector units as well as a very fast growing, organised private sector in computer and industrial product public sector, accounts for about 32 percent of production.

Per capita Production:

Per capita production in Delhi is highest, Rs 1,605 per person in 1999, though it ranks 4th in the total electronic production . It is followed by per capita production of Rs 928 in Karnataka, Rs 818 in Goa, Rs 672 in Haryana, Rs 609 in Maharashtra, Rs 363 in Uttar Pradesh and Rs 360 in Kerala.

Source: Electronics Today




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