The Union Cabinet approved the National Policy on Electronics 2019 on February 19, 2019 which was proposed by the Union Ministry of Electronics and Information Technology.
The 2019 National Policy on Electronics proposes to boost the growth of Electronics System Design and Manufacturing industry in the country. In fact, it replaces the National Policy of Electronics 2012 (NPE 2012).
As per the Industry experts, the National Electronic Policy 2019, can provide an impetus to Make in India (MII) and its efforts to become a global hub for Electronic System Design and Manufacturing (ESDM), apart from making electronics sector more competitive.
The National Policy on Electronics 2019 focuses to create eco-system for globally competitive ESDM sector by promoting domestic manufacturing and export in the entire value-chain of ESDM. It also includes incentives and support for manufacturing of core electronic components and special package of incentives for mega projects which are extremely high-tech and entail huge investments, such as semiconductor facilities display fabrication, etc. In fact, the scheme can formulate suitable schemes and incentive mechanisms to encourage new units and expansion of existing units.
It also aims to promote Industry-led R&D and innovation in all sub-sectors of electronics such as 5G, loT/ Sensors, Artificial Intelligence (Al), Machine Learning, Virtual Reality (VR), Drones, Robotics, Additive Manufacturing, Photonics, Nano-based devices, etc. Along with these features, special thrust on Fabless Chip Design Industry, Medical Electronic Devices Industry, Automotive Electronics Industry and Power Electronics for Mobility and Strategic Electronics Industry is also there in the scheme.
The policy can also create Sovereign Patent Fund (SPF) to promote the development and acquisition of IPs in ESDM sector. In fact, it aims to promote trusted electronics value chain initiatives to improve national cyber security profile.
According to the report, the scheme targets to promote domestic manufacturing and export in the entire value-chain of ESDM for economic development to achieve a revenue of USD 400 billion by 2025. This is likely to include targeted production of 1.0 billion (100 crore) mobile handsets by 2025 valued at USD 190 billion, including 600 million (60 crore) mobile handsets valued at USD 110 billion for export. Thereby, it will enable flow of investment and technology, leading to higher value addition in the domestically manufactured electronic products, increased electronics hardware manufacturing in the country and their export.―SME Futures