Cabinet approves National Policy on Electronics 2019

National Electronics Policy 2019 (NPE 2019), which 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, proposed by the Ministry of Electronics and Information Technology (MeitY), was approved by the Union Cabinet on Tuesday 19 February 19.

NPE 2019 aims to promote domestic manufacturing and export in the entire value-chain of ESDM for economic development to achieve a turnover of $400 billion (about ₹26 lakh crore) by 2025 and generate 1crore jobs in the country.

NPE 2019 proposes to boost mobile manufacturing in the country to 1 billion (100 crore) mobile handsets by 2025, valued at $190 billion (about ₹13 lakh crore) of which 600 million (60 crore) units valued at $110 billion (about ₹7 lakh crore) will be exported from the country.

Government aims to push manufacturing of strategic electronics required by defence and other strategic sector in the country under the policy.

“The policy will enable flow of investment and technology, leading to higher value addition in the domestically manufactured electronic products and increased manufacturing of electronics hardware for local use as well as exports,” said Ravi Shankar Prasad, Union Minister for Law, Justice, Electronics and Information Technology after the cabinet meeting and added, “We are targeting $400 billion (ecosystem) by 2025. It will give jobs to 1 crore people.”

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, Machine Learning, Virtual Reality, Drones, Robotics, Additive Manufacturing, Photonics, Nano-based devices, etc.
  • Provide incentives and support for significantly enhancing availability of skilled manpower, including re-skilling.
  • Special thrust on Fabless Chip Design Industry, Medical Electronic Devices Industry, Automotive Electronics Industry and Power Electronics for Mobility and Strategic Electronics Industry.
  • 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.
  • Provide interest subsidy of 4% on loans up to ₹1000 crore on plant and machinery.

NPE 2019 will lead to formulation of several schemes, initiatives, projects, etc., in consultation with the concerned Ministries/ Departments, for the development of ESDM sector in the country.

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