With an aim to create a $400-billion electronicsmanufacturing industry & generate 1 cr jobs by2025, the Ministry of Electronics and InformationTechnology (MeitY) has come out with the draft‘National Policy on Electronics 2018’ (NPE 2018).
Initiatives taken for Electronic System Design &Manufacturing (ESDM) Sector in India
- Electronics Manufacturing Clusters: To overcome disadvantages due toinfrastructure, EMC was launched whichencouraged entities to provide good qualityinfrastructure and logistics within a cluster.The Government provides 50% & 75% of thecost for development of infrastructure inGreenfield & Brownfield clusters respectively.
- Modified Special Incentive Package scheme(M-SIPS): In order to compensate fordisadvantages in domestic manufacturing, MSIPSprovides for capital subsidy of 25% forElectronics Industry located in non-SEZ areaand 20% for those in SEZ areas.
- Preferential Market Access: It is a schemeguaranteeing preference for locallymanufactured products during procurement(minimum 30%) for government projects.
- Electronics Development Fund (EDF): In orderto promote startups and innovation and alsoto achieve an ambitious target of ‘Net ZeroImports’ by 2020, EDF was launched which is a
fund of funds (invests in Venture funds, whichin turn invests in ventures).
Phased Manufacturing Programme (PMP):PMP has the objective of progressively
increasing the domestic value addition in the domain of mobile handsets and componentsmanufacturing.