Highlights of Draft National Policy on Electronics 2011

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New Delhi: The Union Ministry of Communications and Information Technology had recently announced the Draft National Policy 2011 on Electronics. The policy envisions creating a globally competitive Electronic System Design and Manufacturing (ESDM) industry including nano-electronics to meet the country’s needs and serve the international market. One of the important objectives is to achieve a turnover of about USD 400  Billion  by  2020  involving  investment  of  about  USD  100  Billion  and employment  to  around  28  million  by  2020.

This  is  a  quantum  jump  from production  level  of  about  USD  20  Billion  in  2009. This  interalia,  includes achieving  a  turnover  of USD 55  Billion of chip  design  and embedded  software industry  and  USD 80  Billion of  exports  in  the  sector. Another important  objective  of  the  policy  is  to  significantly  upscale  high-end  human resource creation to 2500 PhDs annually by 2020 in the sector.

The draft was made with inputs from representatives from Ministries / Department, industry associations, and manufacturing units. The salient features of the draft Electronics Policy 2011 are:

1) To facilitate setting up of Semiconductor Wafer Fabs and its eco-system for design and fabrication of chips and chip components.

2) To provide Preferential Market Access for domestically manufactured/designed electronic products including mobile devices, SIM cards with enhanced features, etc. with special emphasis on Indian products for which IPR reside in India to address strategic and security concerns of the Government consistent with international commitments.

3) To create an ‘Electronic Development Fund’ to promote innovations and IP and R&D, commercialization of products, etc in ESDM, nano-electronics and IT sectors by providing appropriate funding / incentives to industry / academic / R&D institutions.

4) To provide incentives for setting up of over 200 Electronic Manufacturing Clusters (EMCs) with world-class logistics and infrastructure and easy to do business facilities.

5) To provide attractive fiscal incentives across the value chain of ESDM sector through a Modified Special Incentive Package Scheme (M-SIPS) to eliminate the disability costs in manufacturing on account of infrastructure gaps relating to power, transportation, etc and to mitigate the relatively high cost of finance, etc.

6) To set up a National Electronics Mission (NEM) with industry participation to evolve programmes in pursuit of the laid down policies and also to create institutional mechanism to advance the implementation of various programmes aimed at achieving the objectives enumerated in this policy and to promote as un Electronic Hardware Manufacturing Hub and suitably market ‘Brand India’ in electronics.

The draft is available on the Department of Information Technology (DIT) website for discussion and feedback.

Kerala IT News

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