As mentioned in the
National Policy on Electronics (NPE 2012), the demand for electronics in the
Indian market is expected to reach USD 400 Billion by 2020. Without
intervention, at the current rate of growth, domestic production can cater to a
demand of about USD 100 Billion by 2020.
While
the future is difficult to predict, the value of imports of electronics goods
during the period April-December 2015 was USD 31.06 Billion, which is less than
the value of imports of petroleum products during the same period, which were
USD 68.20.
Steps
taken by the Government to promote Electronics Hardware Manufacturing in the
country are given as under:-
1. Promotion of
electronics hardware manufacturing is one of the pivotal Flagship Programme
under “Digital India “campaign of the Government.
2. Modified Special
Incentive Package Scheme (M-SIPS) provides financial incentives to offset
disability and attract investments in the electronics hardware manufacturing
including chip manufacturing. The scheme provides subsidy for investments in
capital expenditure - 20% for investments in Special Economic Zones (SEZs) and
25% in non-SEZs.
3. Electronics
Manufacturing Clusters (EMC) Scheme provides financial assistance for creating
world-class infrastructure for electronics manufacturing units. The assistance
for the projects for setting up Greenfield Electronics Manufacturing Clusters
is 50% of the project cost subject to a ceiling of Rs. 50 Crore for 100 acres
of land. For larger areas, pro-rata ceiling applies. For lower extent, the
extent of support would be decided by the Steering Committee for Clusters (SCC)
subject to the ceiling of Rs. 50 Crore. For setting up Brownfield Electronics
Manufacturing Cluster, 75% of the cost of infrastructure, subject to a ceiling
of Rs.50 Crore is provided.
4. Policy for providing
preference to domestically manufactured electronic products in Government
procurement is under implementation.
5. Electronic
Development Fund (EDF) policy has been approved to support Daughter Funds
including Early Stage Angel Funds and Venture Funds in the area of Electronics
System Design and Manufacturing, Nano-electronics and IT. The supported
Daughter Funds will promote innovation, R&D and product development within
the country.
6. A meeting of State
IT Ministers and State Government Officials was held on 26.08.2014 to encourage
them to actively promote electronics manufacturing. Several States have shown
keen interest.
7. Approvals for all
foreign direct investment up-to 100% in the electronic hardware manufacturing
sector are under the automatic route.
8. Under the
Electronics Hardware Technology Park (EHTP) Scheme, approved units are allowed
duty free import of goods required by them for carrying on export activities,
CST reimbursement and excise duty exemption on procurement of indigenously
available goods, as per the Foreign
9. Tariff Structure has
been rationalized to promote indigenous manufacturing of electronic items.
10. Mandatory
compliance to safety standards has been notified for identified Electronic
Products with the objective to curb import of sub-standard and unsafe
electronics goods. As of now, 30 electronic products are under the ambit of
this Order.
11. Government has
approved setting up of two semiconductor wafer fabrication (FAB)manufacturing
facilities in India.
12. Two Schemes for
skill development of 90,000 and 3,28,000 persons, respectively in the
electronics sector have been approved to provide human resource for the
industry.
13. The Scheme to
enhance the number of PhDs in the Electronic System Design and Manufacturing
(ESDM) and IT/IT Enabled Services (ITES) sectors has been approved. 3000 PhDs
are proposed to be supported under the Scheme.
14. Keeping in view the
huge indigenous requirement on account of roadmap for digitalization of the
broadcasting sector, Indian Conditional Access System (iCASTM) has been
developed to promote indigenous manufacturing of Set Top Boxes (STBs). The
iCASTM is available to domestic STB manufacturers at a price of USD 0.5 per
license for a period of three years as against market price of USD 4-5 per
license for other competing products. The implementation of iCASTM in the cable
networks has already started.
15. An Electropreneur
park has been approved for providing incubation for development of ESDM sector
which will contribute IP creation and Product Development in the sector.
16. National Centre of
Excellence in Flexible Electronics (NCFlexE) is being set up in IIT Kanpur with
the objectives to promote R&D; Manufacturing; Ecosystems; Entrepreneurship;
International Partnerships and Human Resources and develop prototypes in
collaboration with industry for commercialisation.
17. Centre for
Excellence on Internet of Things (IoT) is being set up in Bengaluru jointly
with NASSCOM.
18. An Incubation
center with focus on medical electronics is being set up at Indian Institute of
Technology, Patna.
19. The Department of
Electronics and Information Technology (DeitY) provides funding under several
schemes for promotion of R&D, including support for International Patents
in Electronics & IT (SIP-EIT); Multiplier Grants Scheme and Scheme for
Technology Incubation and Development of Entrepreneurs (TIDE) in the area of Electronics,
ICT and Management.
This information was given by the
Minister of State (Independent Charge) in the Ministry of Commerce &
Industry Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today.
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