Explained :- National Electronics Policy (NEP) 2018

Explained - National Electronics Policy (NEP) 2018

The government has released the draft of the National Electronics Policy 2018,on Wednesday has set an ambitious target of creating a $400 billion electronics manufacturing industry 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.

What are its objectives ?

  • To Become a global leader in the Electronics Manufacturing Services (EMS) segment by promoting progressively higher value addition in manufacturing of electronic products
  • To Support a comprehensive Start-up ecosystem in emerging technology areas such as 5G, IoT, Artificial Intelligence, Machine Learning, etc & their applications in areas such as Defence, Agriculture, Health, Smart Cities and Automation, with special focus on solving real-life problems.
  • Promote research, innovation and support to the industry in the areas of packaging, interconnects and micro photonics, as a long term measure to counter the problems posed by the continued use of Silicon, like the limit of scaling and dark Silicon
  • It also 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 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 etc.

Highlights of National Electronics Policy 2018 :-

  • 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.
  • It talks about exempting the import duty on identified capital equipment not being manufactured in the country to reduce capital expenditure for setting up/expansion of existing units.
  • 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.
    Note :- 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.
  • 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.
  • 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.
  • The draft proposes suitable direct tax benefits, including inter-alia investment-linked deduction under Income Tax Act for electronics manufacturing sector, for setting up of a new manufacturing unit or expansion of an existing unit.

First National Policy on Electronics :-

  • The first National Policy on Electronics (NPE) was rolled out in 2012.
  • The NPE 2012 provided the road map for the development of Electronics System Design and Manufacturing (ESDM) sector in the country.
  • Implementation of the Schemes/ Programmes under the aegis of NPE 2012 successfully consolidated the foundation for a competitive Indian ESDM value chain.
  • The Government now seeks to build on that foundation to propel the growth of ESDM industry in the country.

Leave a Reply