The country’s draft electronics policy released by the IT ministry on Wednesday has set an ambitious target of creating a $400 billion electronics manufacturing industry by 2025, with the mobile phone devices segment accounting for three-fourths of the production. The draft National Policy on Electronics (NPE) aims to promote domestic manufacturing in the entire value-chain of ESDM (electronic system design and manufacturing) for spur economic development.
The proposed policy aims to double the target of mobile phone production from 500 million units in 2019 to 1 billion by 2025 to meet the objective. The $400 billion turnover shall include targeted production of 1 billion mobile handsets by 2025, valued at $190 billion (approximately Rs 13 lakh crore), including 600 million mobile handsets valued at $110 billion (approximately Rs 7 lakh crore) for export, the draft states.
The government plans to replace the modified special incentive scheme with schemes that it will find easier to implement such as interest subsidy and credit default guarantee etc. The modified special incentive package scheme was launched in 2012 which provided for capital subsidy of 25 per cent for the electronics industry located in non-SEZ area and 20 per cent for those in SEZ areas.
As on September 30, 2018, 265 applications with proposed investment of Rs 61,925 crore have been received under this scheme, out of which 188 applications with proposed investment of Rs 40,922 crore have been approved and the investment of Rs 8,335 crore has been made by 139 applicants, the draft said.
According to the draft, 20 greenfield and three brownfield electronic manufacturing cluster projects have been sanctioned with the project outlay of Rs 3,898 crore, including Rs 1,577 crore from the Government of India.
The policy proposes to push development of core competencies in all the sub-sectors of electronics including electronic components and semiconductors, defence electronics, automotive electronics, industrial electronics, strategic electronics etc.
[“source=gsmarena”]
