Manufacturing Sector in Uttarakhand

Manufacturing Sector in Uttarakhand

Manufacturing Sector in Uttarakhand : Manufacturing is an important sector in Uttarakhand’s economy. The state has a rich resource base and locational advantages that provide opportunities for industrial growth. However, the manufacturing sector in Uttarakhand faces several challenges like difficult terrain, poor connectivity, inadequate infrastructure, power shortages etc.

The manufacturing sector contributes around 18% to the Gross State Domestic Product (GSDP). Key manufacturing industries in Uttarakhand include food processing, engineering, electrical machinery, paper, textiles, chemicals, pharmaceuticals etc. The state has a strong presence of micro, small and medium enterprises (MSMEs) in the manufacturing sector.

Some of the key aspects related to manufacturing in Uttarakhand are discussed below:

Industrial Policy and Incentives

• Uttarakhand has a liberal industrial policy aimed at promoting industrialization in the state. The policy provides several fiscal and non-fiscal incentives for industries.
• Industries enjoy incentives like 100% exemption on stamp duty, concessional registration charges, reimbursement of VAT/CST, transport subsidy in hill districts, capital investment subsidy, interest subsidy etc.
• Special packages and incentives offered for thrust sectors like food processing, horticulture, herbal & aromatics, biotechnology etc.

Industrial Infrastructure

• Uttarakhand State Infrastructure and Industrial Development Corporation (SIDCUL) has developed integrated industrial estates (IIEs) at Pantnagar, Sitarganj, Haridwar, Selaqui, Kashipur etc. These estates provide developed land with infrastructure.
• SIDCUL has also established sector specific parks and zones like IT Park, Bio-Technology Park, Herbal & Aromatic Park, Floriculture Park etc.
• To attract investment, SIDCUL provides transparent and investor friendly services for allotment of land and regulatory clearances.

Industrial Clusters

• Rudrapur has emerged as a major industrial cluster with presence of engineering, auto components, electronics, agro & food processing and other manufacturing industries.
• Pantnagar has an industrial cluster focused on transport equipment, auto and auto components manufacturing.
• Kashipur hosts a large number of industries engaged in manufacturing of agro products, paper, chemicals, textiles, rubber, plastics etc.

Key Manufacturing Industries

Food Processing

• Uttarakhand has immense potential for food processing based on locally grown fruits, vegetables, spices, herbs etc.
• Food processing units are concentrated in plain districts like Dehradun, Haridwar, Udham Singh Nagar and Nainital.
• Two mega food parks have been established at Haridwar and Kashipur to provide infrastructure and support to food processing companies.

Engineering and Electrical Equipment

• Engineering industry has seen growth in clusters like Rudrapur and Pantnagar which host several auto-component manufacturers, light engineering units etc.
• BHEL has a large unit at Haridwar which manufactures hydro and thermal power generation equipment.

Paper and Pulp

• Uttarakhand has a well developed paper industry with presence of large integrated paper mills as well as numerous small paper production units.
• Key paper clusters exist at Kashipur and Rudrapur. Major companies operating paper mills include Orient Paper Mills, Century Pulp and Paper, LNJ Power Ventures, Rama Paper Mills etc.

Textiles

• Uttarakhand has a long tradition of handlooms and handicrafts. Numerous powerlooms and garment manufacturing units exist in the small scale sector.
• Large scale textile mills are located at Kashipur, Rudrapur, Sitarganj, Selaqui and Pantnagar. Key companies include Texport Industries, Ginni Filaments, Vardhman Textiles, Sutlej Textiles etc.

Chemicals and Pharmaceuticals

• Chemical units are concentrated in industrial areas like Dehradun, Haridwar, Rudrapur, Kashipur, Pantnagar etc. with presence of companies like Chempharm Industries, Bhageria Industries, Suraj Products Ltd. etc.
• Key pharmaceutical companies operating in Uttarakhand include Ajanta Pharma, Bliss GVS Pharma, Pfizer, Ranbaxy etc.

Information Technology (IT)

• Software technology parks set up at Dehradun and Nainital provide infrastructure for IT/ITeS companies. Key companies present include HCL, TCS, Infosys etc.
• Electronics hardware manufacturing companies like Moser Baer, Intex Technologies and Dixon Technologies have set up units in Haridwar and Dehradun.

Government Initiatives

• Organizing investors summit to attract investment in thrust sectors.
• Single window clearance mechanism established for quick project approvals.
• Upgradation of transport infrastructure and connectivity projects being implemented.
• Skill development programs initiated to create industry-ready workforce.

Growth Drivers

• Rich availability of raw materials, water, land, power etc.
• Locational advantage due to proximity to Delhi-NCR region.
• Availability of quality technical and engineering institutes.
• Supportive industrial policy and attractive incentive framework.
• Established industrial parks and estates developed by SIDCUL.

Challenges

• Difficult hilly terrain hampering connectivity.
• Inadequate infrastructure in remote areas.
• Shortage of power affecting industries.
• Limited availability of required technical skills.
• Prevalence of small scale and traditional industries.

Opportunities

• Huge potential for food processing based on local agricultural produce.
• Scope for promoting niche industries like horticulture, herbal, floriculture etc.
• Emerging sectors like IT, biotechnology, electric vehicles etc.
• Thrust on developing MSME clusters under state industrial policy.

Conclusion to Manufacturing Sector in Uttarakhand

Manufacturing Sector in Uttarakhand : The manufacturing sector holds significance for economic growth and employment generation in Uttarakhand. While traditional industries have grown over time, the state needs to focus on high technology and skill-based emerging industries. Development of supporting infrastructure and policy support would facilitate industrialization in the state. Promotion of MSME clusters can spur economic activities. Overall, a multi-pronged approach is required to realize the manufacturing potential of Uttarakhand.