The Union Cabinet today gave its approval to the National Policy on Electronics 2019 (NPE 2019), proposed by the Ministry of Electronics and Information Technology (MeitY).

The Policy 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.

Need of the policy:

  1. Export led development of nation
  2. Success of Make In India
  3. Skill development and Employment Generation
  4. Curbing the rising import bill of electronics
  5. Helping start-ups in ESDM
  6. Taking care of R & D, Patent rights and innovation in ESDM

Implementations and target

  • The Policy will lead to the formulation of several schemes, initiatives, projects and measures for the development of ESDM sector in the country as per the roadmap envisaged therein.
  • Promote domestic manufacturing and export in the entire value-chain of ESDM for economic development to achieve a turnover of USD 400 billion by 2025.

Salient features

  • Create eco-system for globally competitive ESDM sector: Promoting domestic manufacturing and export in the entire value-chain of ESDM.
  • Provide incentives and support for manufacturing of core electronic components.
  • Provide special package of incentives for mega projects which are extremely high-tech and entail huge investments, such as semiconductor facilities display fabrication, etc.
  • Formulate suitable schemes and incentive mechanisms to encourage new units and expansion of existing units.
  • Promote Industry-led R&D and innovation in all sub-sectors of electronics, including grass root level innovations and early stage Start-ups in emerging technology areas such as 5G, loT/ Sensors, Artificial Intelligence (Al), Machine Learning, Virtual Reality (VR), Drones, Robotics, Additive Manufacturing, Photonics, Nano-based devices, etc.
  • Provide   incentives   and   support   for   significantly   enhancing availability of skilled manpower, including re-skilling.
  • Special  thrust  on  Fabless  Chip  Design  Industry,  Medical Electronic Devices Industry, Automotive Electronics Industry and Power Electronics for Mobility and Strategic Electronics Industry.
  • Create Sovereign Patent Fund (SPF) to promote the development and acquisition of IPs in ESDM sector.
  • Promote trusted electronics value chain initiatives to improve national cyber security profile.

Significance of the Policy

  • The NPE 2019 when implemented will lead to formulation of several schemes, initiatives, projects, etc., in consultation with the concerned Ministries/ Departments, for the development of ESDM sector in the country.
  • It will provide an impetus to Make in India (MII) and its efforts to become a global hub for ESDM, apart from making electronics sector more competitive.
  • It will enable flow of investment and technology leading to higher value addition in the domestically manufactured electronic products,
  • It will help in increased electronics hardware manufacturing in the country and their export
  • Generating substantial Employment opportunities.
  • Given that India’s electronic hardware demand is expected to rise to $400 billion by 2023-24, the policy clearly expects that most of this will be indigenously produced, reducing India’s import bill on electronics.
  • The creation of the Sovereign Patent Fund to promote the development of intellectual property in the ESDM sector will boost export competitiveness.

Electronics System Design and Manufacturing (ESDM)

The Electronic System Design & Manufacturing (ESDM) industry consists of four key components:

  • electronics products,
  • electronics components,
  • semiconductor design and
  • electronics manufacturing services.

In India, semiconductor design is the number one growth area among the components.

The Government of India attaches high priority to electronics hardware manufacturing and it is one of the important pillars of both “Make in India” and “Digital India” programmes. Implementation of the Schemes/ Programmes under the aegis of the National Policy on Electronics 2012 (NPE 2012) has successfully consolidated the foundations for a competitive Indian ESDM value chain.

It is now proposed to build on that foundation to propel the growth of ESDM industry in the country. Besides the economic imperative, focus on electronics hardware manufacturing up to the integrated circuit or chip level is required due to the growing security concerns.

Q] With advent of Industrial Revolution 4.0, the importance of ESDM industry has risen. Taking into account this importance, discuss the importance of the recently launched National Policy for Electronics.

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