National Policy on
Electronics 2019 (NPE-2019)
ICEA Lauds
NPE 2019
[ICEA Press
Release dated 26th February 2019]
ICEA Chairman, Mr Pankaj Mohindroo welcomed the
new Policy on Electronics (NPE 2019) released by the Government yesterday after
the approval from the Union Cabinet. He specially welcomed the objective of
transforming the industry to reach the global level. He appreciated the special
place given to the mobile sector which will account for nearly half the entire
electronics industry estimated at US$ 400 billion by 2025 in the NPE. Exports
account 60% of the total mobile industry value of US$ 190 bn in the target
year.
The ICEA Chairman noted the strategic emphasis on
the components and design sector in the policy. Fabless semiconductor
manufacturing and intellectual property development are the means to reach the
target of US$ 400 bn. As of now, Indias share in global hardware production is
only 3% in the total of USD 2 trillion but this is set to rise substantially in
the transformation.
The mobile industry has played a major role in the
growth of electronics in India with the value rising by seven times to Rs 1.32
lakh crores in just three years. The total production was 22.5 crore pieces in
2017-18 as against 6 Crs in 2014-15. Governments emphasis on manufacturing and
investment promotion through incentives for capital investments (25% under the
M-SIPS scheme) have helped the industrys growth.
The ICEA Chairman, however, suggested that many
more substantial and bold steps are required to make local manufacturing
attractive. Incentives for working capital through interest equalization scheme
on the lines of agriculture and export industry is required, especially for the
struggling Indian brands who are fighting for survival. Further, manufacturing
requires a stable and vibrant ecosystem in the supply chain, starting from
import of key parts to job work in the ancillary and final testing and
marketing to reach the consumers in India and outside.
There are many regulatory kinks in this supply
chain consisting mainly of inverted duty between parts and the finished product
and also lack of standardized and workable job work and wastage norms. These
are coming in the way of implementing the ambitious PMP (Phased Manufacturing
Program), which showed good initial results and led to the setting up of the
268 factories, mentioned by the Finance Minister in his Budget speech and also
the Prime Minister from time to time.
The ICEA Chairman assured the Government that the
industry will rise to the demands of the new policy. As it is, 12% of mobile
phone manufactured in the world are made in India. There is a great interest in
developing India as a global hub among both foreign and Indian investors and
the new policy has created a wave of hope and excitement in the industry.
Mr Mohindroo called upon the Government to create
a new regulatory and promotional frame with tax breaks in the follow up to the
new policy. He said that the results can be achieved much before the terminal
year 2025 envisaged in the policy if the required measures are put in place.
Highlights
|
§ Make in India § Digital India § Level playing field
vis-a-vis competing nations § Design and
Intellectual Property § National security § Large investments § Semiconductor fabrication Modified Special Incentive Package Scheme (M-SIPS) § Public Procurement
Order 2017 § 419 Investment
Proposals involving Investment of INR 1,13,089 crore § 197 applications
with proposed Investment of approximately INR 41,791 crore § 134 units have
commenced commercial production ·
Capital Investment is INR 9,961 crore ·
Total sales of INR 74,921 crore ·
Revenue paid INR 9,020 crore ·
Employment generated by these units so far is 66,555 § Electronics
Manufacturing Clusters (EMC) Scheme ·
20 Greenfield EMCs and 3 Brownfield EMC projects outlay of
INR 3,898 crore ·
3,565 acres of Land § Electronics,
Nano-electronics and IT § Ventures working in
ESDM § 13 Daughter Funds
is INR 6,950 crore § Exports for BoP
Reversal § Mobile Handsets § LCD/LED TVs § Light Emitting
Diode § Global Hub § Components,
including Chipsets § Industry to compete
globally § Domestic value
addition § Linkages with
global trade § Destination for
manufacturing and exports § Large ESDM
eco-system § Net positive
balance of payments § Startup eco system § Fabless chip design
eco-system § Risk-management
eco-system § New innovative
fiscal incentives § Fiscal incentives § Domestic ESDM
industry from dumping of electronics goods § R&D § Intellectual Properties § Global Bases § Components and sub-assemblies § Achieve a turnover
of USD 400 billion § Additive
Manufacturing § Fiscal incentives
and support for export led growth § Core competencies § Electronics
Manufacturing Services (EMS) § Special package of
incentives § Indigenization in
the microchips § Facilitate Loans § Green processes § e-Waste management § Exports to
compensate for disabilities |
§ Electronic products
and their inputs § Suitable methods
for promotion of manufacturing of electronic goods § Tax benefits § Defense Offsets § Electronics
Manufacturing Clusters (EMC) § Import duty on
identified capital equipment, not being manufactured in the county § Forward looking PMP
and stable tax regime § Plan their investments
in the form of Phased Manufacturing Programme (PMP) § High performance
computing § Medium Enterprises
(MSME) § Electronic units/
systems for National Critical Infrastructure § National and global
standards forums § China desk in
Invest India § Encourage
industry-led R&D § Incubation Centres/
Centres of Excellence § Sovereign Patent
Fund (SPF) § Intellectual
Property (IP) and Patents, including through outsourced R&D § Creation of an
ecosystem § Design and IP § Atal Tinkering
Laboratories (ATLs) § R&D and
Innovation § Fabrication,
testing and analysis equipment, accessible to students § Skilled manpower § Deputation to
foreign institutions § Export promotion § National cyber
security profile § Common Criteria/ISO
15408 § Secure chips § Display fabrication § Mega facilities § R&D units
abroad § Public Procurement
(Preference to Make in India) Order 2017 § e-Market Place
(GeM) § Fabless Chip Design
Industry § Electronic Design
Automation (EDA) § India Fabless
Semiconductor Venture Fund § Incubation
Centres/Centres of Excellence (CoEs) § Medical Electronic
Devices Industry § Indian Standards
(IS) § Common testing facilities
§ Skill
development/enhancement § Centre of
Excellence (CoE) § Strategic Electronics
Industry § Engineering and design
of PCBs. § PCB assembly, including
sub-assemblies. § Functional testing. § Warranty and repair
services § Product and component
design § Warehousing of components
and raw materials § Mining or acquiring
mines of rare earth metals § Electronics hardware
manufacturing § National-level
market research reports |
[Ministry
of Electronics and Information Technology Notification No. 26(1)/2019-IPHW dated
25th February 2019]
Subject:
National Policy on Electronics 2019 (NPE 2019)
1. Preamble
1.1. Electronics industry is the world's largest
and fastest growing industry and is increasingly finding applications in all sectors
of the economy. The Government attaches high priority to electronics hardware manufacturing
and it is one of the important pillars of both Make in India and Digital India
programmes of Government of India. 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. The ESDM industry is of strategic importance as
well. India is a signatory to the Information Technology Agreement (ITA-1) of WTO
and Free Trade Agreements (FTAs) with various countries/ trading blocs such as
ASEAN, Korea and Japan. However, the electronics hardware manufacturing sector faces
lack of level playing field vis-a-vis competing nations on account of several disabilities
which render domestic electronics hardware manufacturing uncompetitive. These inter-alia include lack of adequate infrastructure,
domestic supply chain and logistics; high cost of finance; inadequate availability
of quality power; inadequate components manufacturing base; limited design capabilities
and focus on R&D by the industry; and inadequacies in skill development.
1.2. Building India's capacity
in core technology development (Design and Intellectual Property (IP)) requires
deeper consideration. It is noteworthy that standards development, product design or IP
development (semiconductor/ systems) and semiconductor manufacturing are increasingly
becoming important and improving India's participation in this league must be a
major priority for the country, at least from the national security angle. In
the case of building Design and IP based technology companies, the large investments
needed and difficulty in competing with established Multinational Corporations
(MNCs) is a significant barrier. Building semiconductor fabrication capabilities
in India is essential to break into this segment.
1.3. Recognizing the electronics
sectors unique dynamics, significant opportunities, and structural challenges, the
Government of India notified the National Policy on Electronics in 2012 (NPE
2012), which provided a road map for the development of electronics sector in the
country. The Policy is holistic, investor-friendly and market-driven, and
focused on upgradation of infrastructure, providing incentives to offset disabilities,
promoting innovation and human resource development. Schemes such as Modified
Special Incentive Package Scheme (M-SIPS) to provide financial incentives across
the ESDM value chain to compensate for cost disability in manufacturing; Electronics
Manufacturing Clusters (EMC) for providing world class infrastructure and
logistics; mandating safety standards; rationalization of tariff structure and
providing preference to domestically manufactured electronic products in Government
procurement under the aegis of the Public Procurement Order 2017, are under implementation.
As a result, ESDM industry has witnessed significant upward growth in India and
has the potential to become a vehicle of economic growth and development.
1.4. The Modified
Special Incentive Package scheme (M-SIPS), launched in 2012, provides capital
subsidy of 25% for electronics industry located in non-SEZ areas and 20% for
those in SEZ areas. Under M-SIPS, 419 investment proposals involving investment
of INR 1.13,089 crore have been received till 31.12.2018. Out of these 419 applications,
197 applications with proposed investment of approximately INR 41,791 crore
have been approved; 19 applications with proposed investment of approximately INR 14,764
crore have been recommended by the Appraisal Committee for approval and 203 applications
with proposed investment of INR 56,534 crore are under appraisal. Out of 197 units
which have been approved, 134 units have commenced commercial production. Total
capital investment reported by these companies is INR 9,961 crore. These 134 units
have reported total sales of INR 74,921 crore, out of which goods worth INR 16,418
crore have been exported. The revenue paid to the Government on production by
these units is INR 9,020 crore. As per Quarterly Progress Reports received from
approved applicants, employment generated by these units so far is 66,555 (direct
and indirect).
The
Electronics Manufacturing Clusters (EMC) Scheme, also launched in 2012, encouraged
entities, including State Government entities, to provide good quality infrastructure
within a cluster. Under the scheme, 50% of the project cost for Greenfield EMC
and 75% for Brownfield EMC is given as grant. So far, 20 Greenfield EMCs and 3 Brownfield
EMC projects have been sanctioned with the project outlay of INR 3,898 crore, including
INR 1,577 crore from the Government of India as Grant-in-aid. Under this scheme,
3,565 acres of land is being developed in Electronics Manufacturing Clusters with
likely investment of about INR 54,836 crore by the manufacturers.
In
order to promote startups and innovation, a scheme called Electronics Development
Fund (EDF) was launched. EDF is a Fund of Funds which invests in Venture Funds,
which in turn invests in ventures/ Startups in the area of Electronics, Nano-electronics
and IT. At least 50% of the corpus has to be invested in Ventures working in ESDM
sector. EDF will be investing in 13 Daughter Funds. The total targeted corpus of
these 13 Daughter Funds is INR 6,950 crore and the amount committed by EDF to these
13 Daughter Funds is INR 857 crore.
1.5. The
global electronics production is estimated to be USD 2 trillion (approximately INR
1,30,00,000 crore) in 2017. Indian electronics hardware production has increased from
INR 1,90,366 crore in 2014-15 to INR 3,87,525 crore (approximately USD 59
billion) in 2017-18, registering a Compound Annual Growth Rate (CAGR) of 26.7%,
as against a growth rate of 5.5% in 2014-15.
India's
share in the global hardware electronics production is about 3%. The share of
domestic electronics production in India's GDP is 2.3%. The import of electronic
goods was of the order of USD 53 billion (approximately INR 3,44,500 crore) in 2017-18.
With the demand for electronics hardware expected to rise rapidly to about USD 400
billion (approximately INR 26,00,000 crore) by 2025, India cannot afford to bear
a huge foreign exchange outgo on import of electronics alone. This is both an opportunity
and a challenge for the electronics sector. Opportunity to be a global leader and
challenge to address a severe Balance of Payments (BoP) problem, which cannot be
addressed by manufacturing for India alone. This calls for measures to promote large
eco-system for domestic manufacturing, a special emphasis on exports and
increasing domestic value addition. Specific policy initiatives are required to
meet these objectives.
1.6. The production of
Mobile Handsets, LCD/ LED TVs and Light Emitting Diode (LED) Products in the country
has gone up significantly, and over the last few years, the demand of these electronic
products is increasingly being met out of domestic production. The production of
LCD/ LED TVs has gone up from 0.87 crore units in 2014-15 to 1.6 crore units in
2017-18. The production of Light Emitting Diode (LED) Products has gone up from
INR 2,172 crore in 2014-15 to INR 9,630 crore in 2017-18. However. the value addition
continues to be low in the absence of a vibrant components manufacturing ecosystem
in the country. The Phased Manufacturing Programme (PMP) for mobile handsets and
related sub assemblies/ components manufacturing has been implemented with the
objective of progressively increasing the domestic value addition for establishment
of a robust Cellular mobile handsets manufacturing eco-system. As a result, India
has rapidly started attracting investments into this sector and Cellular mobile
handsets manufacturing has emerged as a flagship sector in the electronics manufacturing
space. In 2017-18, the production of Cellular mobile handsets reached
approximately INR 1,32,000 crore, compared to INR 18,900 crore in 2014-15. Production
of Cellular mobile handsets in volume terms reached 225 million (22.5 crore) units
in 2017-18, as compared to production of 60 million (6 crore) units in 2014-15.
As many as 268 manufacturing units for Cellular mobile handsets and their parts/
components have been set up in the country during the last 3-4 years, resulting
in estimated employment for about 6.7 lakh persons (direct and indirect).
1.7. Implementation of
the Schemes/ Programmes under the aegis of NPE 2012 has successfully consolidated the foundations
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. The NPE 2019,
prepared after extensive stakeholder consultation, including the industry, industry
bodies, key Ministries/ Departments of Government of India and State Governments,
is conceived for this purpose.
2. Vision
To
position 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.
3. Mission
3.1. Promote domestic
manufacturing in the entire value-chain of ESDM, including core components and materials
to increase the domestic value addition and reduce dependence on import of electronic
goods by focusing on skill, technology, scale and the global market.
3.2. Strengthen
Indias linkages with global trade, integrate with global value chains and build
facilitative programmes and incentive framework to boost Indian ESDM exports.
3.2.1. Transform
India into a destination for manufacturing and exports in pre identified, high
growth electronics sector by encouraging and incentivizing large ESDM eco-system
to achieve net positive Balance of Payments.
3.3. Develop capacities
for manufacture in all sub-sectors of electronics, including semiconductor
facilities and display fabrication facilities, and create a vibrant and dynamic
fabless chip design eco-system in the country.
3.4. Build a risk-management
eco-system to promote and create a framework for a comprehensive start-up eco-system
with focus on development of products, key components and technologies, based on
emerging technological landscapes.
3.5. Promote ease of manufacturing
by introducing new/ innovative fiscal incentives and augmenting the existing ones
for the ESDM industry to make electronics manufacturing in India globally competitive.
3.6. Ensure effective
measures for protection to the domestic ESDM industry from dumping of electronics
goods.
3.7. Promote R&D
to develop electronic products, including associated design and creation of Intellectual
Properties, for the domestic as well as global markets.
3.8. Incentivize
and facilitate establishment of global bases for manufacturing of components and
sub-assemblies in India.
4. Objectives
4.1. Promote
domestic manufacturing and export in the entire value-chain of ESDM for economic
development to achieve a turnover of USD 400 billion (approximately INR 26,00,000
crore) by 2025. This will include targeted production of 1.0 billion (100 crore)
mobile handsets by 2025, valued at USD 190 billion (approximately INR 13,00,000
crore), including 600 million (60 crore) mobile handsets valued at USD 110 billion
(approximately INR 7,00,000 crore) for export.
4.2. Improve
ease-of-doing Business for the ESDM industry.
4.3. Encourage industry-led
R&D and innovation in all sub-sectors of electronics.
4.4. Promote
and create a framework for comprehensive Start-up eco-system in emerging technology
areas such as 5G, IoT, Artificial Intelligence, Machine Learning, Drones, Robotics,
Additive Manufacturing, Photonics, Nano-based devices etc., and their applications
in areas such as defence, agriculture, health, cyber security, smart cities and
automation, with special focus on solving real-life problems.
4.5. Provide incentives
and support for significantly enhancing availability of skilled manpower, including
re-skilling, in the ESDM sector.
4.6. Provide
fiscal incentives and support for export-led growth, including significantly enhancing
economies of scale in electronics manufacturing.
4.7. Develop
core competencies in all the sub-sectors of electronics, including inter alia electronic components,
sub-assemblies and semiconductors, telecommunication and broadcasting equipment,
IT hardware,
medical electronics, defence and strategic electronics, automotive electronics,
industrial electronics, consumer electronics, etc., and fabless chip design.
4.8. Become
a global leader in the Electronics Manufacturing Services (EMS) segment by
promoting progressively higher value addition in manufacturing of electronic products.
4.9. Provide
policy support and special package of incentives for highly capital intensive projects.
4.10. Drive indigenization
in the microchips used by strategic and critical infrastructure sectors viz., defence,
space, atomic Energy, telecommunications, broadcasting, aviation, power, etc., through
design and production of such microchips.
4.11. Create specialized
governance structures within the Government to cater to specific needs of the ESDM
sector, in view of fast changes in technology and business models.
4.12. Facilitate loans to the industry at competitive
rates for setting up or expansion of electronics manufacturing units.
4.13. 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.
4.14. Encourage and incentivize
Transfer of Technology (ToT) for core technologies.
4.15. Promote research,
innovation and support to industry for green processes and sustainable e-Waste management,
including inter-alia facilitation of citizen
engagement programmes for safe disposal of e-Waste in an environment friendly
manner, development of e-Waste recycling industry and adoption of best practices
in e-Waste management.
5. Strategy
Ministry
of Electronics and Information Technology (MeitY) will coordinate with the concerned
Ministries/ Departments to provide support to industry for rapid and robust expansion
of electronics hardware manufacturing within the country. MeitY shall work out
details and facilitate decisions by the Government on the measures indicated hereunder:
Creating eco-system for globally competitive
ESDM sector
5.1. Create eco-system
for globally competitive ESDM sector by incentivizing domestic manufacturing and
exports to compensate tor disabilities:
5.1.1. Encourage domestic
manufacturing of electronic products and their inputs (parts, sub-assemblies and
components) for significantly increasing value addition by building a comprehensive
ecosystem, covering the entire supply chain, through suitable incentive
mechanisms and fiscal interventions, including phased manufacturing programmes,
and removal of anomalies.
5.1.2. Devise
suitable methods for promotion of manufacturing of electronic goods covered under
the Information Technology Agreement (ITA-1) of WTO.
5.1.3. Provide suitable
tax benefits for the ESDM sector.
5.1.4. Formulate suitable
schemes and incentive mechanisms to encourage new units and expansion of
existing units in electronics manufacturing sector.
5.1.5. Exploring the
possibility of leveraging Defence Offsets, in consultation with the Department of
Defence Production (DOP), for development of electronic components manufacturing.
5.1.6. Provide
support for infrastructure development through formulation of a new scheme or suitable
modifications in the existing Electronics Manufacturing Clusters (EMC) scheme, for
supporting both Greenfield and Brownfield manufacturing clusters. This shall include
leveraging the existing/ upcoming industrial clusters/ manufacturing zones/
corridors in the country, with provision for ready-built factories, for attracting
investment in complete value chain of identified verticals.
5.1.7. Exempt the
import duty on identified capital equipment, not being manufactured in the country,
to reduce capital expenditure for setting up of new units/ expansion of existing
electronics manufacturing units.
5.1.8. Promote a
forward looking and stable tax regime, including advance intimation to the industry
to plan their investments in the form of Phased Manufacturing Programme (PMP) in
various segments of electronics, with a sunset clause.
5.1.9. Develop manufacturing
capacities for high performance computing.
5.1.10. Provide support
for Micro, Small and Medium Enterprises (MSME) in ESDM sector.
5.1.11. Promote domestic
capital goods industry for manufacture of capital goods for electronics industry.
5.1.12. Provide suitable
mechanism to generate resources for promotion of certain critical sub-sectors of
electronics manufacturing such as semiconductor facilities and display fabrication
units.
5.1.13. Provide a framework
for supplying electronic units/ systems for National Critical Infrastructure from
domestic industry with indigenous technology.
Developing
and Mandating Standards
5.2. Set up and promote
standards development framework for developing standards, based on global
benchmarks, for electronics (including components as well as fabless industry),
IT, e-Governance, etc.
5.3. Promote
and support contributions and participation of domain experts from Government.
academia, start-ups and industry in national and global standards forums.
5.4. Set
up an institutional mechanism within MeitY for mandating compliance to standards
for electronics products.
5.5. Create/
upgrade lab infrastructure/ capacity for testing of electronic goods, including
cyber security.
Ease-of-doing-Business
5.6. Strengthen
and leverage Invest India, the National Investment Promotion and Facilitation Agency.
which was established as a single window for global investors. for facilitation
of investment in ESDM sector as a one-stop shop for facilitation of investments
I businesses, coordination with the State
Governments, establishment of joint ventures, obtaining speedy approvals by coordinating
with the concerned Government agencies on behalf of the investors, and hand-holding
them till the units become functional.
Industry-led
R&D and Innovation
5.7. Encourage industry-led
R&D and innovation in all sub-sectors of electronics:
5.7.1. Promote
path-breaking research, grass root level innovations and early stage Start-ups in
emerging technology areas such as 5G, IoT/ Sensors, Artificial Intelligence (AI),
Machine Learning, Augmented Reality (AR) and Virtual Reality (VR), Drones, Robotics,
Additive Manufacturing, Gaming and Entertainment, Photonics, Nano-based devices,
as well as thrust areas such as medical electronics, defence and strategic electronics,
automotive electronics, cyber security, power electronics and automation,
having major economic potential, with a special focus on applying the outcomes,
including frugal solutions, to solve real-life problems. Towards this, in addition
to premier institutes like IITs, NITs, IITs, and Central Universities, the institutes
in small cities shall also be encouraged. Chairs in premier institutions will be
established for focused research in the aforesaid emerging technology areas
and thrust areas of electronics.
5.7.2. Provide support
for setting up of Incubation Centres/ Centres of Excellence (CoE) and strengthening/
re-orienting the focus areas of the existing centres to suit the current and
future research requirements in the aforesaid emerging technology areas and thrust
areas of electronics.
5.7.3. Provide support
for start-ups in these emerging areas/ technologies, from supporting the concept
to development/ prototyping of products, including the complete value chain.
5.7.4. Formulate joint
strategy and action plan along with industry, academia and R&D organizations
to identify core technologies and develop, acquire/ pool Core and Peripheral
IPs, and make them available to the industry.
5.7.5. Create Sovereign
Patent Fund (SPF) to promote the development and acquisition of IPs in ESDM sector.
5.7.6. Provide support for generation of Intellectual
Property (IP) and Patents, including through outsourced R&D.
5.7.7. Set up framework
for creation of an ecosystem for promoting design and IP in the country.
5.7.8. Facilitate
interaction between academia (including Atal Tinkering Laboratories (ATLs) in schools
across India, which aim to foster curiosity, creativity and imagination in
young minds; and inculcate skills such as design mindset, computational thinking,
adaptive learning, physical computing, etc.) and industry to create and share IPs/
prototypes resulting from R&D programmes. An agency to provide linkage
between academia/ research institutes and industry shall be identified. After reviewing
its progress, more such agencies would be set-up at regional levels.
5.7.9. Set up a framework
for incorporating principles of sustainability and environmentally sound management
of electronic goods throughout their life cycle, across all sub-sectors of electronics,
from the design, production to end-of-life disposal.
5.8. Academia and freelancer-led
R&D and innovation: Creation of facilities to house best-in-class fabrication,
testing and analysis equipment, accessible to students, freelancers and academicians
to build, test and improve their prototypes.
Human
Resource Development
5.9. Provide support
for significantly enhancing the availability of skilled manpower in the ESDM sector:
5.9.1. Strengthening/ leveraging
the existing manufacturing, research, design and development hubs for promoting
design and innovation in the field of electronics.
5.9.2. Work closely with
Government, industry, academia, universities and other institutions of learning
and to design programmes to ensure availability of adequate skilled manpower to
the industry.
5.9.3. Provide support
for skill development for emerging technology areas such as 5G, IoT/ Sensors, Artificial
Intelligence (AI), Machine Learning, Augmented Reality (AR) and Virtual Reality
(VR), Drones, Robotics, Additive Manufacturing, Gaming and Entertainment, Photonics,
Nano based devices, as well as for thrust areas such as medical electronics, defence
and strategic electronics, automotive electronics, cyber security, power electronics
and automation at the faculty and student levels.
5.9.4. Generate skilled
manpower/ research base at Post Graduate/ Ph.D. level to work in emerging
technology areas by devising a suitable scheme to support innovation in aforesaid
emerging technology areas.
5.9.5. Provide support
to Indian Ph.D. and Post-Doctoral scholars for carrying out their research work
through deputation to foreign institutions for a period of upto 2 years with a provision
for holding Joint IPR(s), if the research is undertaken jointly with the foreign
institution(s), subject to the condition that they will serve in India for next
5 years.
5.9.6. Formulate schemes
in partnership with the Ministry of Human Resource Development, State Governments,
National Skill Development Corporation (NSDC), Electronics and Telecom Sector Skill
Councils, National Institute of Electronics and Information Technology (NIELIT),
Premier Institutes, etc., targeted specifically at job creation and bridging the
skill gap to provide skilled manpower to the industry.
Export
Promotion
5.10. Provide attractive
package of incentives for promoting export of electronics goods, thereby empowering
the exporters by facilitating global market access.
Trusted
Electronics Value Chain
5.11. Promote
trusted electronics value chain initiatives to improve national cyber security profile
and control its supply chain across national defence (military, intelligence, space)
and critical national infrastructure (energy grids, communication networks, digital
economy, etc.).
Cyber
Security
5.12. Enhance understanding
of cyber security issues/ concerns, risks and mitigation measures thereof pertaining
to electronic products.
5.13. Encourage development
of adequate capacities for testing.
5.14. Encourage use of
IT products tested and evaluated for security, based on standards like Common Criteria/
ISO 15408.
5.15. Promote the use of
secure chips to reduce cyber security risks.
5.16. Promote start-up
eco-system for development of photonics, nano-based devices and cyber security products.
Promotion
of Electronic Components Manufacturing Ecosystem
5.17. Provide
incentives and support for manufacturing of core electronic components (both active
and passive, including bare PCBs, PCB laminates, chip components, connectors,
wound components, switches. relays, ferrites, etc.), lithium-ion cells (and such
other cells that may be commercialized in future with advancement of technology)
for electronics/ EV applications, fuel cells, preform of silica, optical fibre,
solar cells, raw materials for electronic components, etc., and ATMP of semiconductors.
Mega Projects
5.18. Provide special package
of incentives for mega projects which are extremely high tech and entail huge
investments, such as semiconductor facilities (including trusted foundries), display
fabrication, photonics and LED chip fabrication units, including according infrastructure
status to these units.
5.19. Promote investment
in mega facilities abroad, such as an existing semiconductor facility, including
support for setting up of R&D units abroad, where an eco system exists for
a particular technology.
Preferential Market Access
5.20. Encourage the State
Governments to adopt the Public Procurement (Preference to Make in India) Order
2017 (PPO 2017), in procurement of electronic, including cyber security products.
5.21. Leverage Government
e-Market Place (GeM) to create/ expand the market for domestically manufactured
electronic products.
Developing core competencies in the sub-sectors
of Electronics
5.22. Provide special support
for developing core competencies in the following subsectors:
5.22.1. Promotion of Fabless Chip Design Industry
5.22.1.1. Enable a multi-fold growth of Indian fabless chip design industry by
providing requisite support in form of Electronic Design Automation (EDA) tools
and FAB support for early stage startups.
5.22.1.2. Emulation! rapid
prototyping infrastructure at certain locations that is accessible to all fabless
start-ups in the country.
5.22.1.3. Provide support under the PPO 2017 to indigenously designed
integrated circuits, Module-on-Chips, System-on Chips, semiconductor IP licenses,
all associated systems and application software products including software IP licenses,
where IP is resident in India.
5.22.1.4. Provide support for Indian fabless industry through Venture Capital
(VC) funding and through positive market intervention, driven through a dedicated
nodal agency, including establishing "India Fabless Semiconductor Venture Fund"
to directly invest in early-stage seed capital and venture equity capital exclusively
in Indian fabless semiconductor companies with special focus on companies creating
indigenous semiconductor-centric IPs.
5.22.1.5. Set up Incubation Centres/ Centres of Excellence (CoEs) in the country
which shall provide necessary EDA tools, IPs, prototypes and ATMP facilities required
for start-ups.
5.22.1.6. Broaden the VLSI Design base in the country by including larger number
of colleges and institutions with close industry interaction/ participation.
5.22.1.7. Provide export
incentives for fabless chip design companies.
5.22.2. Promotion of
Medical Electronic Devices Industry
5.22.2.1. Promote R&D
through PPP model with the funding support from industry and Government with specific
focus on critical components/ sub-assemblies.
5.22.2.2. Support systems for commercialization of technologies available
with academic/ R&D institutions through exclusive/ non-exclusive
mechanisms.
5.22.2.3. Create infrastructure for carrying out test, evaluation, accreditation
and compliance by setting up new laboratories and upgrading the existing laboratories,
including subsidized access of these facilities to MSMEs.
5.22.2.4. Encourage industry
to comply with Indian Standards (IS).
5.22.2.5. Set up
common testing facilities m the existing manufacturing hubs/ zones/ clusters.
5.22.2.6. Provide support for start-ups through common manufacturing
facilities, open labs programme, etc.
5.22.2.7. Provide support
for manufacturing of specific critical components/ sub-modules for medical
electronics devices such as Magnets, RF amplifiers, scintillators, X-ray and computed
tomography (CT) tubes, medical lasers, detectors, etc.
5.22.2.8. Provide support for skill development/ enhancement of the manpower required
for the industry, including international harmonization efforts for practice of
skills in medical electronics.
5.22.2.9. Institute a Phased
Manufacturing Programme (PMP) for medical electronic devices.
5.22.3. Promotion of Automotive Electronics Industry
and Power Electronics for Mobility
5.22.3.1. Provide support
for R&D and concept-to-market innovation for next generation solid-state batteries
and power electronics
for electric vehicles (EVs), intelligent transportation
systems, drones, personal safety devices/ systems and automation.
5.22.3.2. Focus on IP creation
in India at sub-system level by providing financial support to start-ups.
5.22.3.3. Set up a Centre
of Excellence (CoE) in open engineered controls, electronics and software (CES)
for EVs.
5.22.3.4. Promote exports through 'Make-in-India' branding programme, marketing
incentives and country specific initiatives and export incentives.
5.22.3.5. Institute a Phased
Manufacturing Programme (PMP) for automotive electronic products.
5.22.4. Promotion
of Strategic Electronics Industry
5.22.4.1. Promote capacities for domestic sourcing of electronic goods/
systems in strategic and core infrastructure sectors, viz., defence, atomic
energy, space, railways, power, telecommunications, etc.
5.22.4.2. Create long-term partnerships between domestic ESDM industries and the
strategic sectors for domestic sourcing of electronic goods/ systems.
5.22.4.3. Set up individual core teams for being imparted
training and subsequent transfer of technology (ToT) on core technologies
[antenna design, signal processing card design, electromagnetic interference (EMI)/
electromagnetic compatibility (EMC) proofing, etc.], which are repetitively used
to design solutions for the strategic electronics sector.
Promotion
of Electronics Manufacturing Services (EMS) Industry
5.23. Promote the
following key activities under EMS, for creation of the requisite component manufacturing
eco-system in the country:
5.23.1. Engineering and
design of PCBs.
5.23.2. PCB assembly,
including sub-assemblies.
5.23.3. Functional testing.
5.23.4. Maintenance services
such as warranty and repair services, etc.
5.23.5. Product and component
design
Promotion
of Assembly, Testing, Marking and Packaging (ATMP) Industry
5.24. Providing policy
support for Assembly, Testing, Marking and Packaging (ATMP) lines for select semiconductor
ICs, including memory chips, on security grounds.
Other
Measures
5.25. Promote Eco-park
in each State for processing of e-Waste in environment friendly manner in PPP mode
to integrate formal and informal operators.
5.26. Facilitate
warehousing of components and raw materials to reduce the lead time and make them
available just-in-time for electronics manufacturing/ fabless chip design units,
including start-ups.
5.27. Source, stockpile
and promote exploration and mining or acquiring mines of rare earth metals in
foreign countries/ continents (such as in Africa and Australia) required for electronics
manufacturing.
5.28. MeitY shall
formulate and implement appropriate schemes for promotion of electronics hardware
manufacturing, as required from time to time.
5.29. Develop an index
for indicating status and growth of electronics manufacturing industry in the
States and bring out a periodic report indicating ranking of States.
5.30. Develop a mechanism
for national-level market research reports on performance, impact assessment of
policy interventions for their continuation and/ or mid course correction,
trends, emerging areas, etc., on a periodic basis, including models for successful
innovation for all sub-sectors of electronics.
6.
State Support
6.1. Encourage
and support the States to play a proactive role in promotion of electronics manufacturing
by providing conducive environment to promote investments.
7.
Governance Structure
7.1. Create
institutional mechanism for implementation of various schemes/ programmes under
the Policy to review the implementation status and provide strategic recommendations/
decisions from time to time.
8.
Power to Amend the Policy
8.1. Notwithstanding
anything contained in the foregoing paras, MeitY with the approval of competent
authority, may review and amend various aspects of this Policy from time to time,
depending upon the experience gained during implementation, market dynamics, feedback
from stakeholders, etc.