National Policy on Electronics 2019 (NPE 2019)

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The Union Cabinet approved the National Policy on Electronics 2019 (NPE 2019), proposed by the Union Ministry of Electronics and Information Technology (MeitY). The 2019 Policy on Electronics proposes to propel the growth of Electronics System Design and Manufacturing (ESDM) industry in the country. It replaces the National Policy of Electronics 2012 (NPE 2012).

 

Objective of NPE 2019

The Policy aims to position India as a global hub for Electronics System Design and Manufacturing (ESDM) by encouraging and driving capabilities for developing core components and creating an enabling environment for the industry to compete globally.

Features of National Policy on Electronics 2019

• Create eco-system for globally competitive ESDM sector by 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 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

• 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

Implementation strategy

The Policy will lead to the formulation of several schemes, initiatives, projects and measures for the development of ESDM sector in the country.

Targets

The scheme targets to 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.

This will include targeted production of 1.0 billion (100 crore) mobile handsets by 2025 valued at USD 190 billion, including 600 million (60 crore) mobile handsets valued at USD 110 billion for export.

Major Impact

The NPE 2019 will lead to formulation of several schemes, initiatives, and projects in consultation with the concerned Ministries and Departments for the development of ESDM sector in the country.

It will enable flow of investment and technology, leading to higher value addition in the domestically manufactured electronic products, increased electronics hardware manufacturing in the country and their export.