Cabinet Approves National Policy On Electronics; Targets $400 Bn Turnover By 2025

This Tuesday (February 19), the Union Cabinet approved the National Policy on Electronics 2019 (NPE 2019) which was proposed by the Ministry of Electronics & Information Technology (MeitY).

Keeping all the objectives same as those that appeared in its 2018 draft, the NPE 2019 aims to achieve a turnover of $400 Bn by 2025 in Electronics System Design and Manufacturing (ESDM). This will include targeted production of 1 Bn (100 Cr.) mobile handsets by 2025, valued at $190 Bn, including 600 Mn (60 Cr.) mobile handsets valued at $110 Bn (approximately INR 7,00,000 Cr.) for export.

Interestingly, NPE 2019 has only shifted the timeline, as far as major objectives are concerned. For instance, the NPE 2012, too, had aimed for a turnover of $400 Bn in domestic electronics manufacturing by involving a 100 Bn investment in ESDM.

While announcing the policy, union minister for electronics and information technology, Ravi Shankar Prasad said, “The government was aiming at $400 Bn in revenue by 2025 and generate over one crore jobs. India’s share in world electronic manufacturing is currently 3%, up from 1.31% in 2012-13. We have to increase (manufacturing across) the value chain, not just from one company. If there is a company, there should also be supporting industry.”

Prasad further added, “We are looking at making India as a manufacturing and export hub. You are already aware that lots of companies are looking at moving from China to India.”

The new policy will be promoting research and innovation in all sub-sectors of electronics, including early-stage startups 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.

Also, NPE 2019 will create a Sovereign Patent Fund (SPF) to promote the development and acquisition of IPs (Intellectual Property) in ESDM sector. The policy will apply special thrust on  industries such as fabless chip design industry, medical electronic devices industry, automotive electronics industry and power electronics for mobility and strategic electronics industry.

The MeitY released the draft of National Policy On Electronics in October 2018 and invited public comments and feedback. The draft was criticised by The Indian Cellular and Electronics Association (ICEA), which represents handset makers, that said the measures were inadequate for attracting global companies.

The approved policy has not been made public yet.