Cabinet approves new National Electronics Policy

Cabinet approves new National Electronics Policy

1. The Union Cabinet has approved the National Policy on Electronics (NPE) 2019. The policy aims to a) achieve a turnover of $400 billion for the Electronics System design and Manufacturing (ESDM) sector by 2025 and b) generate 1 crore jobs in India. The ESDM sector includes subsectors such as electronic products, electronic components, semiconductor design, and electronics manufacture.
2. The objectives of NPE 2019 are a) promote domestic manufacturing and export in the entire value-chain of ESDM, b) Provide incentives and support for manufacturing of core electronic components, c) Provide special package of incentives to high-tech mega projects, d) Formulate suitable schemes and incentive mechanisms to facilitate new units and expand existing ones, e) Promote Industry-led R&D and innovation in all sub-sectors of electronics, f) enhance skilled manpower in the sector, g) Create Sovereign Patent Fund (SPF)- this would aid in development and acquisition of IPs in the sector, h) improve national cyber security profile through electronic value chain initiatives.
3. The policy also puts special thrust on few industries. These include a) Fabless Chip Design Industry, b) Medical Electronic Devices Industry, c) Automotive Electronics Industry and d) Power Electronics for Mobility and Strategic Electronics Industry
4. NPE 2019 replaces the National Policy of Electronics 2012 (NPE 2012). NPE 2012 aimed at a turnover of about USD 400 billion for the ESDM sector by 2020