New Policy on Electronics

Subject: Economy

Context:

To seize the moment and to become an electronics manufacturing giant in the post-Covid-19 era, Indian government announced policies involve spending Rs-50,000 crore and aim to attract everyone from semiconductor manufacturers to mobile phone and component giants

Concept:

Schemes announced:

• Production Linked Incentive Scheme (PLI)for Large Scale Electronics Manufacturing shall extend an incentive of 4% to 6% on incremental sales (over base year) of goods manufactured in India and covered under the target segments, to eligible companies, for a period of five years subsequent to the base year
• Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) shall provide financial incentive of 25% on capital expenditure for the identified list of electronic goods,e., electronic components, semiconductor/ display fabrication units, Assembly, Test, Marking and Packaging (ATMP) units, specialized sub-assemblies and capital goods for manufacture of aforesaid goods
• Modified Electronics Manufacturing Clusters (EMC 2.0)Scheme shall provide support for creation of world class infrastructure along with common facilities and amenities, including Ready Built Factory (RBF) sheds / Plug and Play facilities for attracting major global electronics manufacturers, along with their supply chains.

Salient Features of NPE 2019

The Policy 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 and creating an enabling environment for the industry to compete globally.

• 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.
• 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 (Al), Machine Learning, Virtual Reality (VR), 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.