Draft Electronics Policy

Why in the news ?
  • The Ministry of Electronics and Information Technology has released a draft National Electronics Policy on 10th October 2018.
  • The draft policy aims to create a $400-billion electronics manufacturing industry by 2025.
 
More in the news
  • The draft National Policy on Electronics (NPE) aims to promote domestic manufacturing to spur economic development.
  • The draft policy proposes to double the mobile phone production from 500 million to 1 billion by 2025.
  • Draft policy to provide support for significantly enhancing availability of skilled manpower in the electronics system design and manufacturing industry.
  • However, it did not detail and aim for job creation in the sector.
  • 20 greenfield electronic manufacturing clusters and 3 brownfield EMC projects have been sanctioned with the project outlay of Rs 3,898 crore.
  • The policy proposes to push development of core competencies in all the sub-sectors of electronics including :
  1.  electronic components and semiconductors,
  2.  defence electronics,
  3.  automotive electronics,
  4.  industrial electronics and
  5.  strategic Electronics.
  • The draft also proposes suitable direct tax benefits for setting up of a new manufacturing unit or expansion of an existing unit.
Modified Special Incentive Package scheme (M-SIPS)
  • According to the draft, the government plans to end modified special incentive scheme with schemes that it will find easier to implement such as interest subsidy and credit default guarantee etc.
  • Modified Special Incentive Package scheme (M-SIPS) was launched in 2012.
  • M-SIPS was to provide for capital subsidy of 25 per cent for Electronics Industry located in non-SEZ area and 20 per cent for those in SEZ areas.
Source
Indian Express, The Hindu.



Posted by Jawwad Kazi on 11th Oct 2018
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