A mega special economic zone (SEZ) is likely to be set up in every state, according to the new electronics manufacturing policy being prepared by the ministry of IT and electronics.
The policy is expected to be ready in the next three months. SEZs are being planned to promote electronics manufacturing besides making India an export hub for small electronics products.
The government has fixed a target of net zero imports in electronics by 2020. The objective of the policy is to significantly focus on ramping up domestic production, a senior official from ministry told DNA Money.
The national electronics policy was last notified in 2012. Even the existing incentive schemes of Modified Special Incentive Package Scheme (MSIPS) and electronics cluster policy were notified in 2012. The funding in schemes such as MSIPs has dried up as the scheme is likely to get expired by end of this year and most of the other existing schemes will lapse by the end of this year. Electronic Development Fund has been one of the other major schemes rolled out by the government towards domestic manufacturing in electronics sector.
It was not immediately clear whether existing schemes will get an extension or will be subsumed in the new electronics policy, another official privy to the information said.
The initial plan is to tap consumer countries such as Africa, Europe and other western nations where small electronics products could be exported. "We will look at big consumerist markets," the official said.
Several working groups had been set up to look into various aspects of the new policy. The working groups were looking at segments, including mobile handsets, its accessories, LED products, medical and consumer electronics. Besides, steps will be taken to boost production of solar photovoltaic cells, fabless chip design, semiconductors and related products.
According to Make in India Strategy for electronic products prepared by Niti Aayog in 2016, India has not had much success in penetrating the export markets so far. At $6 billion, India has less than 1% share in the world markets.
Electronic components and electronic instruments account for bulk of India's exports. And imports of electronic goods account for more than half of India's total consumption and accounted for as much as 58% of the total consumption in 2014-15. In several countries, the contribution of electronic industry to GDP is significant -- it contributes 15.5% to GDP in Taiwan, 15.1% in South Korea and 12.7% in China. But in India, this proportion is only 1.7%, as per Niti Aayog's report.
The new policy will be in line with Niti Aayog's strategy paper and the focus will be to make India an export oriented market, the official said.
Source: dnaindia.com