Indian electronics hardware production constitutes only around 1.3% of the global hardware production and it is estimated that demand of electronics products and systems in India is expected to grow to USD 400 Billion by 2020. The conventional rate of growth of domestic production, it would only be possible to meet demand of about USD 100 Billion by 2020. The Government recognizes that sustaining growth in IT and telecom is hugely dependent on our ability to foster Electronics System Design and Manufacturing (ESDM) in the country.
While there have been concerted efforts for rapid growth of the electronics (including telecom) hardware manufacturing sector in the past like 100% FDI permitted under automatic route, no Industrial license requirement, these efforts have not led to a substantial impact. India’s growing strength in chip design and embedded software, the increasing importance of design in product development has the potential to make India a favoured destination for ESDM.
The initiatives that have been taken for the development of electronics (including telecom) hardware manufacturing in the country:
• National Policy on Electronics (NPE) 2012
• National Telecom Policy – 2012 (NTP-2012)
• Electronics Manufacturing Clusters (EMC) Scheme
• Modified Special Incentive Package (M-SIPS) Scheme
• Setting up Semiconductor Wafer Fabrication Units
• Preference to Domestically Manufactured Electronic Goods (Preferential Market Access)
• Notification by the Department of Telecommunications (DOT) on 5th October 2012 for Government Procurement and Government funded projects
• Electronics Development Fund (EDF)
• Scheme for mandatory registration of identified Electronic Products for meeting specified safety standards
• Export Promotion Scheme for ESDM Industry
• According Priority Sector Status to IT purchases
• Declaring Mobile phones as goods of special importance under the CST Act, 1956
• Communication and Marketing