Lok Sabha Question No. 220 (STARRED), answered on 2018-12-26
Subject: National Electronics Policy
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: PONNUSAMY VENUGOPAL

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA STARRED QUESTION NO.*220

TO BE ANSWERED ON 26.12.2018

## NATIONAL ELECTRONICS POLICY

## *220. DR. P. VENUGOPAL:

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

- (a) whether it is a fact that the Government has released a draft National Electronics Policy under which it is targeting a turnover of US $ 400 billion for the electronic system design and manufacturing sector;
- (b) if so, the details thereof;
- (c) whether it is also true that the draft policy also suggests replacing the Modified Special Incentive Package Scheme with ones that are easier to implement such as interest subsidy and credit default guarantee to encourage new units and expansion of existing ones in the electronics manufacturing sector; and
- (d) if so, the details thereof?

## ANSWER

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

- (a) to (d):    A statement is laid on the Table of the House.

## STATEMENT REFERRED TO IN REPLY TO LOK SABHA STARRED QUESTION NO.*220 FOR 26.12.2018 REGARDING NATIONAL ELECTRONICS POLICY

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- (a): Yes, Sir. The draft National Policy on Electronics 2018 (NPE 2018), released for public consultation, has targeted a turnover of USD 400 billion for the Electronics System Design and Manufacturing (ESDM) sector by 2025.
- (b): Salient features of the draft NPE 2018 are given in Annexure .
- (c):  Yes,  Sir.  The  draft  NPE  2018  that  was  released  for  public  consultation  did  envisage replacing  the  Modified  Special  Incentive  Package  Scheme  with  schemes  that  are  easier  to implement such as interest subsidy scheme and credit default guarantee scheme to encourage new units and expansion of existing ones in the electronics manufacturing sector. However, based on the comments received, the formulation of the relevant paragraph has been revised as under:

'Formulate  suitable  schemes  and  incentive  mechanisms  to  encourage  new  units  and expansion of existing units in electronics manufacturing sector'.

- (d): Subsequently, drafts of Interest Subvention Scheme and Credit Guarantee Fund Scheme for Electronics Sector have been circulated for stakeholder consultation.

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## National Policy on Electronics 2018 (NPE 2018)

The Ministry of Electronics and Information Technology (MeitY) has formulated the National Policy on Electronics 2018 (NPE 2018), which envisions positioning India as a global hub for Electronics System Design and Manufacturing (ESDM) by encouraging and driving capabilities in the country for developing core components, including chipsets, and creating an enabling environment for the industry to compete globally.

## The salient features of the policy include:

1. Creating eco-system for globally competitive ESDM sector : Promoting domestic manufacturing and export in the entire value-chain of ESDM for economic development to achieve a turnover of USD 400 billion by 2025. This will include targeted production of 1.0 billion mobile handsets by 2025, valued at USD 190 billion (approx. INR 13 lakh crore), including 600 million mobile handsets valued at USD 110 billion (approx. INR 7 lakh crore) for export.
2. Promotion of Electronic Components Manufacturing Ecosystem : Provide incentives and support for manufacturing of core electronic components (both active and passive, including bare PCBs, PCB laminates, chip components, connectors, wound components, switches, relays, ferrites, etc.), lithium-ion cells (and such other cells that may be commercialized in future with advancement of technology) for electronics/ EV applications, fuel cells, preform  of  silica, optical fibre,  solar  cells,  raw  materials  for  electronic  components,  etc.,  and  ATMP  of semiconductors.
3. Mega Projects :  Provide special package of incentives for mega projects which are extremely high-tech and entail huge investments, such as semiconductor facilities (including trusted foundries), display fabrication, photonics and LED chip fabrication units, including according infrastructure status to these units.
4. Formulate suitable schemes and incentive mechanisms to encourage new units and expansion of existing units in electronics manufacturing sector.
5. Focus on Phased Manufacturing Programmes (PMP) for various electronic goods, on the lines of PMP for Mobile Phones and sub-assemblies thereof.
6. Focus  on  encouraging  Industry-led  R&D  and  Innovation  in  all  sub-sectors  of  electronics :  Promote  pathbreaking research, grass root level innovations and early stage Start-ups in emerging technology areas such as 5G, IoT/ Sensors,  Artificial Intelligence (AI), Machine Learning, Augmented Reality (AR) and Virtual Reality (VR), Drones, Robotics, Additive Manufacturing, Gaming and Entertainment, Photonics, Nano-based devices, as well as thrust  areas  such  as  medical  electronics,  defence  electronics,  automotive  electronics,  cyber  security,  strategic electronics, power electronics and automation, having major economic potential, with a special focus on applying the outcomes, including frugal solutions, to solve real-life problems. Towards this, in addition to premier institutes like IITs, NITs, IIITs, and Central Universities, the institutes in small cities shall also be encouraged. Chairs in premier institutions will be established for focused research in the aforesaid emerging technology areas and thrust areas of electronics, including setting up framework for creation of an ecosystem for promoting design and IP in the country.
7. Promote  and  create  a  framework  for  comprehensive  start-up  eco-system  in  aforementioned  emerging  technology areas.
8. Improve ease-of-doing Business for the ESDM Industry.
9. Provide incentives and support for significantly enhancing availability of skilled manpower in the ESDM sector.
10. Promote  research,  innovation  and  support  to  industry  for  green  processes  and  sustainable  e-Waste  management, including inter-alia facilitation of citizen engagement programmes for safe disposal of e-Waste in an environment friendly manner, development of e-Waste recycling industry and adoption of best practices in e-Waste management.
11. Develop manufacturing capacities for high performance computing.
12. Provide support for Micro, Small and Medium Enterprises (MSME) in ESDM sector.
13. Special thrust on :
14.  Fabless Chip Design Industry
15.  Medical Electronic Devices Industry
16.  Automotive Electronics Industry and Power Electronics for Mobility
17.  Strategic Electronics Industry
14. Emulation/  rapid  prototyping  infrastructure  at  certain  locations  that  are  accessible  to  all  fabless  start-ups  in  the country.

## 15. Emphasis on Cyber Security :

-  Enhance understanding  of  cyber  security  issues/  concerns,  risks  and  mitigation  measures  thereof  pertaining  to electronic products.
-  Encourage development of adequate capacities for testing.
-  Encourage use of IT products tested and evaluated for security, based on standards like Common Criteria/ ISO 15408.
-  Promote the use of secure chips to reduce cyber security risks.
-  Promote start-up eco-system for development of photonics, nano-based devices and cyber security products.
16. Promote trusted electronics value chain initiatives to improve India's national cyber security profile and control its supply chain across national defence (military, intelligence, space) and critical national infrastructure (energy grids, communication networks, digital economy, etc.).
17. Exploring the possibility of leveraging Defence Offsets, in consultation with the Department of Defence Production (DDP), for development of electronic components manufacturing.
18. Create Sovereign Patent Fund (SPF) to promote the development and acquisition of IPs in ESDM sector.

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