In the new business normal post the pandemic, the IT sector in India has emerged as a strong contributor with the largest share in FDI inflows. Bouncing back strongly from the effects of the pandemic, the IT and Electronics industry in Punjab has also seen significant growth in the FY 2021-22. With the persistent efforts of the State Government towards attracting investors and enhancing ease of doing business in the State, the investments in the IT and Electronics Sector have touched Rs. 771 Cr. in FY 2021-22, an increase of approximately 67% over the previous financial year.
The investment trend in the IT services and Electronics Sector in Punjab has exhibited a significant recovery after an uncertain FY 2020-21. This has been possible due the proactive facilitation and follow-up with investors during this period. The State Government had extended all possible support to the existing enterprises during this time to adapt to the new working conditions. Investors have in turn expressed their faith in the government machinery, strong ecosystem and infrastructure in the state and have committed significant investments in greenfield as well as expansion projects in FY 2021-22. These investments would boost employment opportunities in the region by generating job avenues for more than 6600 IT professionals.
Some of the major companies that have invested in IT in FY 2021-22 are Japan-based Meritech Software Pvt. Ltd., Xeam Ventures Pvt. Ltd., Ortus Infotech Pvt. Ltd., Virtuoso Netsoft (P) Ltd. and Talwar & Talwar Consultants Pvt. Ltd., operating across diverse services such as Knowledge Process Outsourcing, Database Management, Network Services & Administration, IT Infrastructure Management, Software Design and Development and Intellectual Property Management.
Electronics Manufacturing has also emerged as a major sector attracting investments in FY 2021-22. Punjab has a traditionally strong Electronics ecosystem, being home to India’s only ASIC Fabrication plant at SCL Mohali. SCL is engaged in design, wafer fabrication, assembly and testing of CMOS Integrated Circuits aiding International Research and Space projects.
The electronics sector further received a huge boost in FY 2021-22, with investment of Dixon Technologies which is the first major investment in electronics manufacturing in the State, since the last couple of decades. Dixon Electro Appliances Pvt. Ltd., a JV between Dixon Technologies and Bharti Group’s Beetel Teletech Limited, is setting up an electronics manufacturing plant for Telecom and Networking products in Ludhiana, with an investment of more than Rs. 200 Cr. The company has received Production Linked Incentive (PLI) approval under the–Government of India PLI scheme for the telecom sector and has significant growth plans in the state.
Continental Devices Pvt. Ltd. (CDIL) that manufactures semiconductor components in leaded and surface mount packages and offers Outsourcing Assembly and Test to international semiconductor companies, has also invested in its expansion and modernization. Punjab-based Allengers OEM Private Ltd., manufacturers of x-ray tube, flat panel detector, monitors, high voltage cables, exposure switches etc., is also investing to expand capacity in the state.
Punjab’s vibrant district, Mohali, part of Chandigarh Tri-city region, is emerging as an industrial hub focused on IT Services and Electronics. With proximity to the International Airport, the IT City Mohali offers world class amenities and has attracted many companies to the region. Mohali offers not only green-field sites but also plug-and-play infrastructure for companies interested in establishing their operations in the region. STPI Mohali has the largest incubator among Software Technology Parks of India, spread over 1.40 lakh sq. ft. of built-up space. It is focused on leading technologies like AI/Data Analytics, IoT, Audio, Visual and Gaming.
The excellent infrastructure, higher cost savings compared in Tier I cities, great connectivity, policy incentives and abundant technical trained manpower supported by various prestigious educational and research institutions in Punjab have been the key factors towards the growth of IT sector in Punjab.