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11
October 2018
The government has released the draft of the
National Electronics Policy 2018, aiming for a turnover of $400 billion in
domestic electronics manufacturing by 2025, along with promoting ease-of-doing
business for the entire electronic system design and manufacturing or ESDM
sector, and encouraging industry-led research and development and innovation in
all sub-sectors of electronics.
The policy targets production of one billion
mobile handsets by 2025, valued at $190 billion (about .? 13 lakh crore)
including export of 600 million mobile handsets valued at $110 billion (about
.?7 lakh crore).
The policy aims to also push the startup
ecosystem in emerging technology areas such as 5G, Internet of Things,
artificial intelligence and machine learning, and their applications in areas
such as defence, agriculture, health, smart cities and automation. Being
exportled, it is also targeting to develop core competencies in all the
sub-sectors of electronics, including electronic components and semiconductors,
telecommunication equipment, medical electronics, defence electronics,
automotive electronics, industrial electronics, strategic electronics, etc.,
and fabless chip design.
According to the draft policy, seen by ET, the
ministry of electronics and information technology (MeitY) will “coordinate
with the concerned ministries/departments to provide incentives to industry for
rapid and robust expansion of electronics hardware manufacturing within the
country”. MeitY will work out the details and facilitate decisions by the
government, it said.
Some of the measures proposed in the draft
include promotion of manufacturing of electronic goods covered under the
Information Technology Agreement (ITA-1) of the World Trade Organization and
provision of suitable direct tax benefits, including investment-linked
deduction under Section 35AD of the Income Tax Act for electronics
manufacturing sector, for setting up of a new manufacturing unit or expansion
of an existing unit.
It also proposed “replacing the M-SIPS
(Modified Special Incentive Package Scheme) with schemes that are easier to
implement such as interest subsidy and credit default guarantee, etc., in order
to encourage new units and expansion of existing units in electronics
manufacturing sector”.
The first National Policy on Electronics,
rolled out in 2012, offered incentives to companies setting up manufacturing
units in the country.The Total
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