Lok Sabha Question No. 4284 (UNSTARRED), answered on 2018-03-21
Subject: Promotion of Electronics and IT Hardware Manufacturing
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: E. T. MOHAMMED BASHEER

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA UNSTARRED  QUESTION NO.4284

TO BE ANSWERED ON 21.03.2018

## PROMOTION OF ELECTRONICS AND IT HARDWARE MANUFACTURING

## 4284.       SHRI E.T. MOHAMMED BASHEER:

Will the Minister of ELECTRONICS AND INFORMATION TECHNOLOGY be pleased to state:

- (a) whether the Government plans to promote manufacturing of electronics and IT hardware in the country and if so, the details thereof;
- (b) whether  the  Government  wishes  to  make  India  an  electronics  hardware  manufacturing hub; and
- (c) if so, the steps Government plans to take in this direction?

## ANSWER

## MINISTER OF STATE FOR   ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI K. J. ALPHONS)

(a) to  (c):    Ministry  of  Electronics  and  Information  Technology  (MeitY)  has  taken  several steps  to  promote  manufacturing  of  Electronics  and  IT  hardware  in  the  country  with  the objective to make India an electronics hardware manufacturing hub. Major steps taken by the Government  to  promote  Electronics  and  IT  hardware  manufacturing  in  the  country  are  at Annexure .

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Steps  taken  by  the  Government  to  promote  Electronics  and  IT  Hardware  Manufacturing  in  the Country

1. Promotion of electronics hardware manufacturing is one of the pillars of Digital India campaign of the Government.
2. The National Policy on Electronics (NPE 2012) was notified in October 2012 with the vision to create a globally  competitive  electronics  design  and  manufacturing  industry  to  meet  the  country's  needs  and serve the international market.
3. Modified Special Incentive Package Scheme (M-SIPS) provides financial incentives to offset disability and  attract  investments  in  the  Electronics  Systems  Design  and  Manufacturing  (ESDM)  sector.    The scheme provides subsidy for investments in capital expenditure - 20% for investments in SEZs and 25% in non-SEZs. The scheme is available for both new projects and expansion projects.
4. Electronics Manufacturing Clusters (EMC) have been set up in the country.
5. Notification  for  10  electronic  products  in  furtherance  of  the  Department  of  Industrial  Policy  and Promotion's  Public  Procurement  (Preference  to  Make  in  India)  Order  2017  has  been  issued  on 14.09.2017.
6. Approvals for all foreign direct investment up-to 100% in the electronic hardware manufacturing sector are under the automatic route.
7. For  promotion of exports in the sector,  Merchandise Exports from India Scheme (MEIS) and Export Promotion Capital Goods (EPCG) Scheme are available under the    Foreign Trade Policy, 2015-20. MEIS offers export incentives so as to offset disabilities  of  manufacturing.  Zero  duty  EPCG  scheme allows import of capital goods at zero customs duty, subject to specified export obligation.
8. Tariff  Structure  has  been  rationalized  to  promote  indigenous  manufacturing  of  electronic  goods, including inter-alia Mobile  Handsets,  Televisions,  Electronic  Components,  Set  Top  Boxes,  LED Products,  Medical  Electronics,  Solar  PV  Cells  and  Microwave  Ovens.  To  promote  domestic  value addition  in  mobile  handsets  manufacturing,  a  Phased  Manufacturing  Programme  (PMP)  has  been notified.
9. To promote indigenous manufacturing of Televisions, baggage rules have been amended to ban duty free import of Flat Panel Television Sets w.e.f. August 2014 under the baggage allowance.
10. Mandatory compliance to safety standards has been notified for identified Electronic Products with the objective to curb import of sub-standard and unsafe electronics goods. As of now, 43 electronic products are under the ambit of this Order.

## Promotion of Innovation and R&D

11. Electronics Development Fund (EDF) has been operationalized to support Daughter Funds in the area of ESDM,  Nano-electronics  and  IT.  The  fund  is  housed  in  Canbank  Venture  Capital  Fund  Ltd.  The supported Daughter Funds will promote innovation, R&D, product development and within the country.
12. Keeping  in  view  the  huge  indigenous  requirement  on  account  of  roadmap  for  digitalization  of  the broadcasting  sector,  Conditional  Access  System,  entitled  iCAS  has  been  developed  in  Public-Private Partnership  mode  to  promote  indigenous  manufacturing  of  Set  Top  Boxes  (STBs).  The  iCAS  is available to domestic STB manufacturers at a price of USD 0.5 per license for a period of three years as against market price of USD 3-5 per license for other competing products. The implementation of iCAS in the cable networks is underway.
13. An  Electropreneur  park  has  been  set  up  in  New  Delhi  for  providing  incubation  for  development  of ESDM sector which will contribute IP creation and Product Development in the sector.
14. National Centre of Excellence in Large Area Flexible Electronics (NCFLEX) has been set up in IITKanpur with the objectives to promote R&D;  Manufacturing; Ecosystems; Entrepreneurship; International Partnerships and Human Resources and develop prototypes in collaboration with industry for commercialization.
15. National Centre of Excellence for Technology on Internal Security (NCETIS) has been set up at IITBombay with the objective to address the internal security needs of the nation on continuous basis by
6. delivering  technology  prototypes  required  for  internal  security  and  to  promote  domestic  industry  in internal security.
16. Centre for Excellence on Internet of Things (IoT) has been set up in Bengaluru jointly with NASSCOM.
17. An  Incubation  center  with  focus  on  medical  electronics  has  been  set  up  at  Indian  Institute  of Technology-Patna.
18. An Incubation Center at Kochi with focus on consumer electronics has been set up at IIITM.

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