The Ministry of Electronics and Information Technology (MEITY) on October 10, 2018 released the draft of the National Policy on Electronics 2018, aiming for a turnover of USD 400 billion in domestic electronics manufacturing industry by 2025.
The Ministry of Electronics and Information Technology will coordinate with the concerned ministries and departments to provide incentives to industry for robust expansion of electronics hardware manufacturing. MeitY will work out the details and facilitate decisions by the government.
Highlights of the Draft National Policy on Electronics 2018
• The policy targets production of one billion mobile handsets by 2025, valued at USD 190 billion (about Rs 13 lakh crore).
• It is targeted to export 600 million mobile handsets valued at USD 110 billion (about Rs 7 lakh crore).
• 20 greenfield and three brownfield electronic manufacturing cluster projects have been sanctioned with the project outlay of Rs 3898 crore, including Rs 1577 crore from the Government of India.
• It promotes a forward looking and stable tax regime, including advance intimation to the industry to plan investments in the form of Phased Manufacturing Programme (PMP) in various segments of electronics, with a sunset clause should be promoted.
• It mentions that government would levy cess on identified electronic goods to be considered to generate resources for promotion of certain critical sub-sectors of electronics manufacturing such as semiconductor wafer fabrication and display fabrication units.
Objective of Draft National Electronics Policy 2018
• Promotion of manufacturing of electronic goods covered under the Information Technology Agreement (ITA-1) of the World Trade Organization
• Exempting the import duty on equipment not being manufactured in the country to reduce capital expenditure for setting up of a unit or for expansion of existing units
• Replacing the M-SIPS (Modified Special Incentive Package Scheme) with schemes that are easier to implement such as interest subsidy and credit default guarantee to encourage expansion in electronics manufacturing sector
First National Policy on Electronics
• The first National Policy on Electronics (NPE) was rolled out in 2012.
• The NPE 2012 provided the road map for the development of Electronics System Design and Manufacturing (ESDM) sector in the country.
• Implementation of the Schemes/ Programmes under the aegis of NPE 2012 successfully consolidated the foundation for a competitive Indian ESDM value chain.
• The Government now seeks to build on that foundation to propel the growth of ESDM industry in the country.
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