With the National Digital Communications Policy well underway, it is scheduled to be implemented by July 2018; the electronics industry can soon after expect a new National Policy on Electronics.
With the Indian electronics industry, estimated at Rs. 7.87 lakh crore in 2017-18, growing at 20 percent year-on-year; and imports, pegged at Rs. 3.1 lakh crore in 2017-18, increasing at 6 percent per annum over the last couple of years; it is prudent to have in place a new policy to promote electronics manufacturing in the country. There is a huge opportunity for emergence of next-generation devices, which do not yet exist.
The proposed policy seeks to position India not only as a manufacturing centre but as a hub for design and innovation as well. It will underscore India’s growing manufacturing prowess, right down to the level of components and sub assemblies, and pitch its deeper value addition capabilities. It will also leverage the country’s existing strengths in electronics design, given that nearly 75 percent of global technology majors have research and development presence in India.
The current thrust is to incentivize maximum value addition, and the duty structure is geared toward encouraging players to bring in raw modules and components for assembly. The country will move toward incentivizing the export of electronics products manufactured in India. The direction will be that a strong ecosystem is provided, so companies come in and manufacture not just for the domestic market but also for its international counterpart. Global sub-assembly manufacturers are being wooed. As India grows its manufacturing size and scale, it is looking at Taiwan, Korea, Japan, and others to have a larger foothold here. Within the electronics industry, the cumulative equity inflow of FDI in 2017 was Rs. 11,630 crore. This is in the backdrop of domestic investment being Rs. 1.57 lakh crore in FY2017.
The draft policy being placed for public consultation in a month or so, is expected to be finalized by the second half of the current fiscal.