MOX- One stop solution to ESDM industry

Published: May 31, 2019 9:55:35 AM

With an intention to give a boost to the booming mobile industry in India, Mobile Open Exchange Cluster (MOX) has been set up in Noida, Greater Noida and Yamuna Expressway region.

MOX- One stop solution to ESDM industry MOX Ecosystem

The Indian Mobile industry has experienced a rapid growth in last five years and had 616 million unique subscribed users by the end of June 2016. Till now, it has penetrated 47 percent of the Indian market showing an enormous potential of growth for mobile companies. It is estimated that by 2020 more than 1.5 billion phones will be sold in India. The number of smartphone users from a quarter of a billion to more than half a billion in the same time, which is about 55 percent of the total population. About 40 new mobile handset manufacturing units and 30 mobile components and accessory manufacturing units have been set up in the country in the last two years resulting in direct employment for over one lakh persons and are expected to provide indirect employment for lakhs of people. Consultants envisage a localization rate of mobile components at 60% by 2026, considering proactive and sustained Government policies facilitating ‘Make in India’ and ‘Digital India’ with a steady compounded annual growth rate of 15 percent through 2026.

Many states, including Uttar Pradesh, are currently working on new, highly competitive and comprehensive Electronics Manufacturing Policies (ESDM). Uttar Pradesh is the biggest consumer of mobile phones owing to its demographic dividend, with the state contributing to approximately 15% of the total mobile connections in the country as on January 2017. The state stands to receive huge tax revenues in form of consumption-based/destination-based taxation properties of GST. Currently, Uttar Pradesh is at the forefront of mobile production in India (with 13 out of 38 plants of the country in the state). To keep up the pace of the demand, by 2020 local production capacity is expected to increase by more than twice.

With an intention to give a boost to the booming mobile industry in India, Mobile Open Exchange Cluster (MOX) has been set up in Noida, Greater Noida and Yamuna Expressway region. MOX is an initiative of the Uttar Pradesh Government and World Trade Centre (WTC) Noida. Uttar Pradesh Government in 2018 signed a MoU with WTC, Noida to develop Tech zone, Greater Noida as a nucleus of MOX, which is acting as a catalyst to enable growth in the mobile and allied sectors in the state. Though this initiative was rolled out to promote telecom industry, its vision has been further expanded from mobile to ancillary industries. MOX is a dedicated ecosystem for mobile industry to provide a platform to mobile manufacturers / app developers to set up their base in the region, and get all facilities required for successful operation of industry at a specific location. MOX can be understood as a focused mobile ecosystem built on three pillars- Infrastructure, Hardware and Software.

It is an innovative Cluster Initiative, designed to create a robust state-level indigenous mobile manufacturing hub through a number of endeavors like:

  • Prompting the creation of an ecosystem of various layers, each one interdependent on another, functioning together and providing benefits to manufacturers and consumers;
  • Mitigating challenges faced by technology industries though access to skilled manpower and collaboration with other related industries and service providers;
  • Enabling reduced operational costs and enhanced profitability for the mobile industry
  • Building efficient supply chain systems by the close proximity of the infrastructure service providers, retailers and distributors, handset manufacturers, and providers of mobile content, application and services.

WHY NOIDA? New Okhla Industrial Development Authority has emerged as a planned, integrated, modern industrial city, well connected to Delhi through a network of roads, national highways and the ultra-modern DND flyover, offering inter-road linkages to all parts of the country. It is spread over 20,316 hectares and offers a pollution free high standard of living and highly supportive industrial environment with its unique infrastructure. Noida stands as one of the well-planned integrated Industrial Township in the world, with wide roads, well developed land, uninterrupted power supply, good communication et al. Since years it has been attracting industrial giants and infotech companies due to its conducive atmosphere for industrial growth.

With ‘laissez faire’ (an economic system in which transactions between private parties are free from government intervention) as the guiding spirit, very attractive and industry-friendly packages are offered to prospective entrepreneurs. These are characterized by an innovative approach that redefines the concepts of ‘one-stop shop’ and ‘single-window clearance’ to expedite the setting up of an industry. On that note, Noida’s ‘single-window’ clearance system eliminates red tape and bureaucratic hassles while maximizing transparency in dealings. Assistance is also provided in securing permissions, licenses, sanctions and approvals from the government bodies and agencies, in very less time.

Another such area is Greater Noida Industrial Area. Located at the intersection of the Western and Eastern Dedicated Freight Corridors, it is also the gateway to the Delhi-Mumbai Industrial Corridor (DMIC), which will aid in attracting the investments into the region. Greater Noida Industrial Area lies within the National Capital Region of New Delhi and is adjacent to Noida. Proximity to Delhi Airport (which accounts for more than 50% of electronics import from China) and the upcoming International Airport at Jewar makes the region suitable for access and logistic operations of the raw materials and final products. The proposed Greenfield International Airport will usher in investments in the region. The integrated township is shaping up as India’s smartest city and the National Capital Region’s most modern urban development centre. It has emerged as a modern model of far-sighted town planning. Set-up in January 1991 under the UP Industrial Area Development Act 1976, Greater Noida is being developed as Metro centre providing for quality urban environment, to attract economic activities and population to decongest Delhi. The region already inhabits many industrial parks especially dedicated to IT/TES companies and is surrounded by some of the major global mobile manufacturing brands such as Samsung, Oppo, and Vivo which are already operating in Noida-Greater Noida region.

The Techzone region in Greater Noida houses the Gautam Buddha University and is surrounded by a lot of premier educational institutes, providing opportunity to develop and build industry academia relations for industries’ niche and general skill requirements and develop a focused approach on research and development. The state also has a large pool of semi-skilled and unskilled labour. The Uttar Pradesh Government has been promoting Greater Noida as an IT destination and focusing now on developing Greater Noida into a Centre of Excellence in software, hardware, engineering and technology by providing proper infrastructure and facilities in specially dedicated IT parks. The GNIDA has implemented special IT-ITES policy to support the IT-ITES industry which has resulted into operations of a lot of IT companies in the region. Located in such a prime area, TECHZONE, the nucleus of MOX offers a seamless establishment of ESDM industries. Moreover, the cluster will benefit the region to thrive and prosper and will contribute to the township development by catering to housing requirement of the migrating workforce. It will also lead to development of a digital society and will fuel the development of much needed social infrastructure in the region.

Speaking at an event in 2017, then Telecom Minister Ravi Shankar Prasad said, “Noida has become the first choice for electronic manufacturing, particularly mobile manufacturing. In the past two years, 73 new mobile and mobile components manufacturing units were set up in the country. Of these, 32 came up in Noida.”

(This article is sponsored by World Trade Center)

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1How to maintain basic hygiene for health and wealth during the Coronavirus pandemic