National Policy On Electronics 2019
- National Policy on Electronics 2019 (NPE 2019), proposed by the Ministry of Electronics and Information Technology, envisions positioning India as a global hub for Electronics System Design and Manufacturing - (ESDM) by encouraging and driving capabilities in the country for developing core components, including chipsets, and creating an enabling environment for the industry to compete globally.
- Emerging economies, backed by strengthening fundamentals around demographic dividend, disposable income and growing enterprises, have been a major impetus to this growth as well. The robust growth of India’s electronics industry is primarily driven by huge domestic demand for products that can be attributed to a multitude of factors, including growing middle class, rising disposable incomes, favorable duty structures and large scale public procurement needs driven by government projects such as broadband connectivity to villages, rural electrification and e-governance programs.
- Target: Promote domestic manufacturing and export in the entire value-chain of ESDM for economic development to achieve a turnover of USD 400 billion by 2025. This will include targeted production of 1billion mobile handsets by 2025, valued at USD 190 billion including 600 million mobile handsets valued at USD 110 billion for export.
Salient Features of NPE 2019
- Create eco-system for globally competitive ESDM sector: Promoting domestic manufacturing and export in the entire value-chain of ESDM.
- Provide incentives and support for manufacturing of core electronic components.
- Provide special package of incentives for mega projects which are extremely high-tech and entail huge investments, such as semiconductor facilities display fabrication, etc.
- Formulate suitable schemes and incentive mechanisms to encourage new units and expansion of existing units.
- Promote Industry-led R&D and innovation in all sub-sectors of electronics, including grass root level innovations and early stage Start-ups in emerging technology areas such as 5G, loT/ Sensors, Artificial Intelligence (Al), Machine Learning, Virtual Reality (VR), Drones, Robotics, Additive Manufacturing, Photonics, Nano-based devices, etc.
- Create Sovereign Patent Fund (SPF)to promote the development and acquisition of IPs in ESDM sector.
- Promote trusted electronics value chain initiatives to improve national cyber security profile.
Impact
- The NPE 2019 when implemented will lead to formulation of several schemes, initiatives, and projects in consultation with the concerned Ministries / Departments, for the development of ESDM sector in the country.
- It will enable flow of investment and technology, leading to higher value addition in the domestically manufactured electronic products, increased electronics hardware manufacturing in the country and their export, while generating substantial employment opportunities.
- With India’s focus on electronics, rising demand of the youth for electronic products will lead to a substantial growth rate in ESDM sector.
- Policy will lead to formulation of schemes and special incentives for ESDM sector, thus increasing the quality and more exports.
