National Policy on Electronics 2018

National Policy on Electronics 2018

What is Important?

UPSC perspective:
Mains paper 3:Electronics manufacturing sector in India

Why in News?

The Ministry of Electronics and Information Technology (MEITY) on October 10, 2018 released the draft of the National Policy on Electronics 2018, aiming for a turnover of USD 400 billion in domestic electronics manufacturing industry by 2025.

Objective of Draft National Electronics Policy 2018

*This policy helps to promote domestic manufacturing in entire value-chain of the ESDM sector for spur economic development in the country.

*It also helps to double the target of mobile phone production from 500 million units in 2019 to 1 billion by 2025 to meet the objective.

*Its target to create $400 billion electronics manufacturing industry by 2025, with mobile phone devices segment accounting for three-fourths of production.

*It replaces existing incentive schemes like Modified Special Incentive Package Scheme (M-SIPS), with schemes that are easier to implement such as interest subsidy and credit default guarantee etc.

*It also takes into consideration interest subsidy and credit default guarantee in order to encourage new units and in the expansion of existing units in the electronics manufacturing sector.

*Tax benefits: It proposes suitable direct tax benefits, including inter-alia investment-linked deduction under Income Tax (IT), Act for electronics manufacturing sector, for setting up of new manufacturing unit or expansion of an existing unit.

*It also proposes cess on select electronic goods resources to promote certain critical sub-sectors of electronic manufacturing such as semiconductor wafer fabrication and display fabrication units.

First National Policy on Electronics

*The first National Policy on Electronics (NPE) was rolled out in 2012.

*The NPE 2012 provided the road map for the development of Electronics System Design and Manufacturing (ESDM) sector in the country.

* Implementation of the Schemes/ Programmes under the aegis of NPE 2012 successfully consolidated the foundation 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

National Policy on Electronics 2018 National Policy on Electronics 2018 Reviewed by The Hindu Current Affairs on October 14, 2018 Rating: 5

No comments:

Powered by Blogger.