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