With an aim to increase 1 crore jobs in India by 2025 and create Rs 26-lakh crore electronics manufacturing ecosystem, the Union Cabinet last month approved a new national electronics policy.
After the cabinet meeting, Law and Information Technology Minister Ravi Shankar Prasad said, “National Electronics Policy came in 2012. Now, we are revising it completely as National Electronics Policy 2019. We are targeting USD 400 billion (ecosystem) by 2025. It will give jobs to 1 crore people.” (Source: Business Today)
The goal is to manufacture 100 crore mobile handsets by 2025 that is valued about Rs 13 lakh crore and eventually reach 60 crore mobile handsets valued at Rs 7 lakh crore for export. When the NDA government came to power on May 26, 2014, the electronic production growth during that time was 5.5 per cent. However, in 2017-18, electronic production growth increased to 26.7 per cent as compared to 5.5 per cent in 2014-15. The government wants to take it to 32-33 per cent.
The government plans to give credit guarantee and interest subvention schemes to ease the financial burden on domestic manufacturers. Moreover, the policy also proposes to push strategic electronics ecosystem that play a vital role for sectors such as medical, defence and aviation. It also promotes trusted electronics value-chain initiative to improve national cybersecurity profile.
The National Electronics Policy promises a distinct package of incentives for mega projects that are extremely high-tech and demand huge investments such as display fabrication and semiconductor facilities. It also proposes to create a sovereign patent fund to promote the development and acquisition of intellectual property rights or patents in the electronics sector.
Apart from the new electronics policy, the Cabinet also gave approval to the memorandum of understanding between Vietnam and India for cooperation in the field of communications.