National Electronics Policy 2011

The National Policy on Electronics was formulated and released by the government of India in 2011 for boosting in the electronic systems design and manufacturing industry and for increasing its global market share. The Department of Information Technology of the Ministry of Communication and Information Technology drafted this electronic policy in 2011.

  • The policy is the first of three interdependent and synergistic policies for information technology, telecom, and electronics formulated by the government.
  • The national policy of Electronics, 2011 projects to make a worldwide competitive Electronic Systems Design and Manufacturing (ESDM) along with nanoelectronics for fulfilling India's needs and attending to the Global market.
  • There are several challenges that include infrastructure gap, tax structure, supply chain, and logistics, labour laws and limited research and development focus, lack of sufficient funding etc., that needs to be resolved for the success of this policy.
  • Electronics sector witnesses high-velocity technological change due to which the life cycles of products are declining. This increases the importance of design and development.

Vision of National electronics policy 2011

  • “To create a globally competitive electronics design and manufacturing industry to meet the country's needs and serve the international market.”

Mission of National electronics policy 2011

  • Promotion of indigenous manufacturing in the entire value chain of Electronics System Design and Manufacturing (ESDM) for promoting economic growth and development.
  • Developing the capacities for manufacturing of strategic electronics within the country.
  • Promotion of a vibrant and sustainable research and development, design, and engineering and innovation in the electronics sector.
  • Development of high-quality electronic products at reasonable prices for promoting inclusive adoption and deployment for improving the productivity, efficiency, and ease of operations in other sectors.
  • Promotion of eco-friendly global best practices in the use and disposal of various electronic objects.

Objectives of national electronics policy 2011

  • Creation of an ecosystem for making a globally competitive electronics system design and manufacturing in the country and achieve a turnover of around USD 400 billion by 2020. This involves investments around USD 100 billion and ensuring employment to around 28 million people at various levels.
  • To build on the Software Industry and emerging chip designs for achieving global leadership in chip design, VLSI and other important technical areas for achieving turn over USD 55 billion by 2020.
  • To increase the value of exports from India from USD 55 billion to USD 80 billion by 2020 in the ESDM sector.
  • To increase the available skilled human resource in the ESDM sector. Special efforts for augmenting the postgraduate education, and producing around 2500 PHDs every year by 2020.
  • Creation of an institutional mechanism for the development and for the mandation of standards and certification for electronic products and services for strengthening the quality assessment infrastructure throughout the country.
  • To ensure the development of an appropriate security ecosystem in the ESDM sector for strategic purposes.
  • Creation of long-term partnerships between the strategic sectors like space, atomic energy, and defence etc., with the ESDM sector.
  • Becoming a global leader in the creation of Intellectual Property in the ESDM sector by an increase in funds for research and development, seed capital and venture capital for startups in the nanoelectronics sectors and ESDM sectors.
  • To ensure the development of core competencies in the automobile, avionics, solar, information and broadcasting, and industrial sectors by promoting the use of ESDM in these sectors.
  • To ensure the use of the latest technology for developing electronic products for fulfilling the domestic requirements and conditions at reasonable prices.
  • To promote the adoption of best practices for e-waste management.
  • Creation of specialized governance structures for catering to the specific requirements of the ESDM sector including high velocity technological and business model changes.
  • To ensure availability of loans to set up the ESDM units.

Strategies to achieve the objectives of Electronics policy 2011

  • Creation of ecosystem for globally competitive ESDM sector
  • Providing attractive fiscal incentives through the Modified Special Incentive Package Scheme (M-SIPS) across the value chain of the ESDM sector for eliminating disability caused due to infrastructure gaps, transportation etc.
  • To ensure setting up Semiconductor Wafer Fab facilities for design and fabrication of chips.
  • To provide preferential treatment in market access for domestically designed and manufactured electronic products.
  • To give incentives to set up more than 200 electronic manufacturing clusters.
  • To ensure the establishment of a stable tax regime to attract Global Investments.
  • To promote India as an attractive investment destination for the ESDM sector among the leading nation and companies.
  • The loans for the procurement of computer and related peripherals by individuals and small businesses to be categorised in priority sector lending.
  • Promotion of Exports
  • To focus on exports for generating volumes and economies of scale by the provision of proper incentives and by reorganizing the procedures and logistics for facilitating the import of components/subsystems and the export of products.
  • The strategy includes giving special focus to items listed under the ESDM sector including electronics manufacturing service industry under the Focus Product Scheme.
  • Human resource development
  • To work closely and bring synergy with the private sector, institutes and universities for ensuring adequately trained and skilled workforce available to the industry.
  • To support capacity building within an academic institute for enhancing the production of a number of postgraduates and PhDs for supporting the chip design and embedded software and hardware industry.
  • To promote skill-oriented courses and training sessions for Electronic design for enabling graduates from other disciplines to migrate to the ESDM sector.
  • To ensure collaboration with national and international institutions for developing new skills and course on the latest technologies and products in the ESDM sector.
  • Developing and maintaining standard
  • To mandate technical and safety standards for curbing the inflow of unsafe and substandard electronic products.
  • To develop standards for meeting specific Indian conditions including power supply, climatic conditions, public health and safety, and handling conditions etc
  • Development of National Policy Framework for enforcing and using Standards and Quality Management processes.
  • Cybersecurity
  • To ensure the creation of a completely secure cyber ecosystem in the country. To achieve this goal, careful and well-defined technology and systems and the development of appropriate products and solutions is necessary.
  • The actions will prioritize suitable design and development of indigenous products through research, testing, and validation of security of products that meet the requirements for securing the ICT infrastructure and cyberspace.
  • Strategic electronics
  • Promotion of manufacturing capacity for Sourcing ESDM in the strategic sectors viz. space, defence, and atomic energy etc.
  • Creation of long term partnerships between the strategic sectors and domestic ESDM industry for domestically sourcing the electronic products for strategic sectors.
  • To meet the defence offset applications for electronic procurement through ESDM products.
  • Creation of an ecosystem for vibrant Innovation and R&D in the ESDM sector and nanoelectronics
  • Creation of electronic development fund for the promotion of innovation and intellectual property, research and development, and commercialization of products in nanoelectronics, and IT sector, and ESDM by giving reasonable incentives to industries and R&D institutions.
  • To give a special focus for innovation and research in green technologies, convergence and broadband technologies.
  • Setting up VLSI incubation centers in four different cities of India in association with Software Technology Parks of India, Industry and academic institutions.
  • Design and development of Indian microprocessor for different specific and strategic applications.
  • Electronics in other sectors
  • Automotive electronics: To ensure the development of a Centre of Excellence for Microcontroller Units (MCUs), Micro-electrical-mechanical systems (MEMS) and other electronic devices to consolidate India as one of the global auto hubs.
  • Avionics: to provide support to the aviation industry and facilitate the development of R&D and outsourcing of engineering design and other related software for avionics and maintenance etc.
  • LED: to promote the use of LED especially in rural areas through products like LED lamps, street lighting, traffic lights etc., for promoting the manufacture of the LED.
  • Industrial electronics: to ensure design and development of affordable medical electronic equipment industry and to develop its downstream manufacturing activities through cluster-based approach.
  • Solar photovoltaics: to develop manufacturing capacity of photovoltaics for supporting 20 GW solar power generation by 2020.
  • Information and broadcasting: creation of an ecosystem for manufacturing broadcast equipment such as the set-top box in India.
  • Handling e-waste
  • Creation of a mechanism for implementing e-waste (Management and Handling) Rules 2011 including restrictions as per global best practices.
  • To ensure implementation of Extended Producers Responsibility for electronic hardware manufacturers and recyclers.
  • Promotion of the development of e-waste recycling industry for recycling the domestically produced e-waste.
  • Creation of a specific thrust in the Electronic Development Fund for developing intellectual property rights and electronic products in the green technologies.
  • Government structures
  • Setting up National Electronics Mission and ensuring industry participation in it for evolving programs according to the laid down policies. Creating an institutional mechanism for implementing different programmes to achieve the objectives enumerated in this policy.
  • Promoting India as an Electronics Hardware Manufacturing Hub and marketing “Brand India” in electronics.
  • Renaming Department of Information Technology as the Department of Electronics and Information Technology (DeitY)

Draft National Policy on Electronics 2018

The draft of the national policy on electronics, 2018 was released by Ministry of Electronics and Information Technology in October 2018. The policy aims to create the domestic electronic industry turnover of USD 400 billion by 2025. The ministry of Electronics and information technology will coordinate with other Ministries and departments and would facilitate the decisions by the government.

VISION

“To position India as a global hub for Electronics System Design and Manufacturing (ESDM) by creating an enabling environment for the industry to compete globally”.

OBJECTIVES

  • Promoting domestic manufacturing in the entire value chain of ESDM for achieving a turnover of USD 400 billion by 2025. This includes the production of 1.0 billion mobile handsets worth USD 190 billion, including 600 million handsets worth USD 110 billion for export.
  • Strengthening India's linkages with international trade and integrating global value chains and incentive framework for boosting Indian ESDM Exports.
  • Promoting a startup ecosystem in areas such as 5G, artificial intelligence, internet of things, machine learning etc., and promoting their applications in defence, agricultural, smart cities and automation.
  • Development of competencies in all sub-sectors of electronics including semiconductors, telecommunication equipment, medical electronics, automatic electronics, strategic electronics, defence electronics etc.
  • Promoting indigenisation in microchips used by strategic sectors such as defence, atomic energy, power, space, telecom etc., through their indigenous design and manufacture.
  • Promoting R&D, innovation and support to the industrial sector for green processes and suitable e-waste management in an environment-friendly manner.
  • Creation of specialised government structures for catering the specific needs of ESDM sectors to cope up with in the fast changes in technology and business models.

Strategy to for to achieve these goals

  • Creation of an ecosystem for globally competitive ESDM sector by providing suitable direct tax benefits for setting up new manufacturing units are expanding existing units. Replacing M-SIPS schemes with a scheme such as Interest subsidy and Credit default guarantee etc.
  • Providing support for infrastructure development in the existing electronics manufacturing clusters for both Greenfield and Brownfield clusters.
  • Establishing standards-setting body in MeitY for developing standards for electronics, IT and e-governance etc.
  • Promoting ease of doing business through leveraging Invest India, National Investment Promotion and Facilitation Agency for promoting investment in the ESDM sector.
  • Encouraging industry-led research, development, and innovation in all the sub-sectors of Electronics by promoting grass root level innovations and early-stage startups and providing supports for IP and patents.

Apart from these, strategies have been made for human resource development in electronics sectors, promotion of ESDM Exports, cybersecurity, preferential market access etc.

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