Govt. to provide incentives to setup Electronic Mfg. Clusters (EMCs), Preference to home-grown Electronic Products [National Policy on Electronics 2011]


Draft National Policy on Electronics was released on October 3rd and it promises to bring about changes that will bring about a major fillip to the Electronic sector in India. Electronics Industry is one of the fastest growing in the world and demand in the Indian market is expected to touch USD 400 Billion by 2020!

The major share of growth for Electronics Industry in India & globally has been due to the demand from Telecom Industry, which itself has been growing at a break-neck pace. Everything in today’s world resides on chips. As we move towards a more connected and online world, the chips that process our data will witness huge demand!


Following points made in Draft National Policy on Electronics 2011 are expected to boost Indian Electronics Industry to over USD 400 million by 2020.

1) To facilitate setting up of Semiconductor Wafer Fabs and its eco-system for design and fabrication of chips and chip components.

2) Preferential Market Access for domestically manufactured / designed electronic products including mobile devices, SIM cards with enhanced features, etc. with special emphasis on Indian products for which IPR resides in India.

3) To create an “Electronic Development Fund” to promote innovations and IP and R&D, commercialization of products, etc in ESDM, nano-electronics and IT sectors by providing appropriate funding/incentives to industry/academic/R&D institutions.

4) To provide incentives for setting up of over 200 Electronic Manufacturing Clusters (EMCs) with world-class logistics and infrastructure and easy to do business facilities.

5) To provide attractive fiscal incentives across the value chain of Electronics sector through a Modified Special Incentive Package Scheme (M-SIPS) to eliminate the disability costs in manufacturing on account of infrastructure gaps relating to power, transportation, etc and to mitigate the relatively high cost of finance, etc.

6) To set up a National Electronics Mission (NEM) with industry participation to evolve programmes in pursuit of the laid down policies and also to create institutional mechanism to advance the implementation of various programmes aimed at achieving the objectives enumerated in this policy and to promote as un Electronic Hardware Manufacturing Hub and suitably market “Brand India” in electronics.

Check out the press release here and you can download the pdf copy of National Electronic Policy 2011 here!

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