Lok Sabha Question No. 631 (UNSTARRED), answered on 2019-11-20
Subject: National Policy on Electronics
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: Midhun Reddy, Durga Prasad Rao Balli

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA UNSTARRED  QUESTION NO. 631

TO BE ANSWERED ON 20.11.2019

## NATIONAL POLICY ON ELECTRONICS

## 631.      SHRI P.V. MIDHUN REDDY: SHRI BALLI DURGA PRASAD RAO:

Will the Minister of Electronics and Information Technology be pleased to state:

- (a) whether the Government has taken any steps under The National Policy on Electronics 2019 (NPE 2019), to position India as a global hub for Electronics System Design and Manufacturing (ESDM);
- (b) if so, the details thereof;
- (c) whether any institutions have been proposed to be established under the said policy in the State of Andhra Pradesh; and
- (d) if so, the details thereof?

## ANSWER

## MINISTER OF ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI RAVI SHANKAR PRASAD)

- (a) and   (b):  The  Government has notified the  National Policy on Electronics 2019 (NPE 2019) on 25.02.2019, with the vision to position India as a global hub for Electronics System Design and Manufacturing (ESDM) and create an enabling environment for the industry to compete  globally.  The  steps  taken  under  NPE  2019  to  position  India  as  a  global  hub  for ESDM are given in the annexure.
- (c) and   (d): The Paragraph 6 of National Policy on Electronics 2019 proposes to encourage and support the States to play a proactive role in promotion of electronics manufacturing by providing conducive environment to promote investments. So far, no institutions have been proposed to be established under the  said policy in the State of Andhra Pradesh.

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Annexure

## 1. Reduction of Corporate Income Tax

Domestic  companies  can  now  opt  for  concessional  tax  regime  @22%  (25.17%  inclusive  of surcharge and cess) provided that such a company has not claimed any income tax incentive or exemption. Such companies will also not be liable to pay Minimum Alternate Tax (MAT). Further, to attract fresh investments in manufacturing and boost Make in India programme, new provision has been made which allows new domestic companies incorporated on or after October 1, 2019, making  fresh  investment  in  manufacturing,  and  starting  operations  before  March  31,  2023,  an option to pay corporate income tax at 15 per cent (17.16% inclusive of surcharge and cess). Such company cannot avail any other income tax exemption/ incentive under the Income-Tax Act. Such companies will also not be liable to pay Minimum Alternate Tax (MAT).

MAT rate for companies availing exemptions/incentives has been reduced from 18.5% to 15%.

## 2. Exemption of Basic Customs Duty (BCD) on capital goods for the manufacture of specified electronic goods

In the Union Budget 2019-20, BCD has been exempted on specified capital goods [falling under Chapter  82,  84,  85  and  90]  for  the  manufacture  of  specified  electronic  goods  such  as  Printed Circuit Board (PCB), Charger of cellular mobile phones, Display Panel, etc., subject to actual user condition, with the objective of increasing competitiveness of the industry.

## 3. Exemption of BCD on Open Cell for manufacture of TV Panels

To  promote  domestic  manufacturing  of  TV  Panels,  the  BCD  levied  on  Open  Cell  (15.6'  and above)  for  use  in  the  manufacture  of  Liquid  Crystal  Display  (LCD)  and  Light  Emitting  Diode (LED) TV Panels has been reduced to Nil from 5% vide Customs Notification No.30/2019 dated 17.09.2019 till  September 2020. Also,  BCD has been exempted on following inputs to promote domestic manufacturing of Open Cells:

-    Chip on Film
-    Printed Circuit Board Assembly (PCBA)
-    Cell (glass board/substrate)

## 4. Efforts for promotion of investments in electronics manufacturing

Various efforts have been made by Ministry of Electronics and Information Technology (MeitY) to attract  Indian  and  foreign  companies  in  various  countries  to  invest  in  electronics  sector.  In  this regard,  recently,  Secretary,  MeitY  led  a  Government-Industry  delegation  to  Taiwan,  during October  15  -  18,  2019, for  promotion  of  investment  in  electronics  manufacturing  sector  and participation in TAITRONICS 2019. During the visit Secretary, MeitY had one-on-one meetings with  electronics  manufacturing  companies, viz .,  Sercomm,  Foxlink,  Foxconn,  Nanya  Plastics, Passive System Alliance, Wistron and Tripod.

A round table meeting under the chairmanship of Hon'ble Minister of Electronics and Information Technology  was  organised  with  the  key  leaders  of  Electronics  Industry  on  16.09.2019.  The objective of meeting was to recognize the key challenges being faced by the Industry, opportunities and expectations of the industry from the Government. The companies from different verticals of electronics  sector  such  as  mobile  handsets,  consumer  electronics,  strategic  electronics,  medical devices,  information  technology,  electronics  manufacturing  services,  electronic  components, telecom and LED lighting participated in the round table.