Structure:

Introduction: (up to 30 words) Give introduction as to the necessity of Electronics Policy, previous policy and their failure

Body: (up to 100 words) Break down the National Electronic Policy 2019

Conclusion (up to 30 words) Conclude with pros/cons of the policy, constructive criticism and suggestion

Supporting Points:

The Union Cabinet gave its approval to the National Policy on Electronics 2019 (NPE 2019), proposed by the Ministry of Electronics and Information Technology (MeitY).

1. The implementation of the Schemes/ Programmes under the aegis of the National Policy on Electronics 2012 (NPE 2012) has successfully consolidated the foundations for a competitive Indian ESDM value chain.
2. The National Policy of Electronics 2019 (NPE 2019) replaces the National Policy of Electronics 2012 (NPE 2012). NPE 2019 proposes to build on that foundation to propel the growth of ESDM industry in the country.

• The Policy envisions positioning India as a global hub for Electronics System Design and Manufacturing - (ESDM) by encouraging and driving capabilities in the country for developing core components, including chipsets, and creating an enabling environment for the industry to compete globally.

Salient Features of NPE 2019:

1. Creation of ecosystem for globally competitive ESDM sector by promoting domestic manufacturing and export in the entire electronics system value-chain.
2. Providing incentives and support for manufacturing of core electronic components.

• Providing special package of incentives for mega projects which are extremely high-tech and entail huge investments, such as semiconductor facilities display fabrication, etc.

1. Formulation of suitable schemes and incentive mechanisms to encourage new units and expansion of existing units.
2. Promotion of Industry-led R&D and innovation in all sub-sectors of electronics, including grass root level innovations and early stage Startups in emerging technology areas such as 5G, Internet of Things (IoT)/ Sensors, Artificial Intelligence (Al), Machine Learning, Virtual Reality (VR), Drones, Robotics, Additive Manufacturing, Photonics, Nano-based devices, etc.
3. Providing incentives and support for significantly enhancing availability of skilled manpower, including re-skilling.

• Providing special thrust on Fabless Chip Design Industry, Medical Electronic Devices Industry, Automotive Electronics Industry and Power Electronics for Mobility and Strategic Electronics Industry.
• Creation of Sovereign Patent Fund (SPF) to promote the development and acquisition of Intellectual Properties(IPs) in ESDM sector.

1. Promotion of trusted electronics value chain initiatives to improve national cyber security profile.

Implementation strategy:

The Policy will lead to the formulation of several schemes, initiatives, projects and measures for the development of ESDM sector in the country as per the roadmap envisaged therein.

Targets:

2025. Promote domestic manufacturing and export in the entire value-chain of ESDM for economic development to achieve a turnover of USD 400 billion (approximately INR 26,00,000 crore) by 2025.
2026. This will include targeted production of 1.0 billion (100 crore) mobile handsets by 2025, valued at USD 190 billion (approximately INR 13,00,000 crore), including 600 million (60 crore) mobile handsets valued at USD 110 billion (approximately INR 7,00,000 crore) for export.

Major Impact:

1. The NPE 2019 when implemented will lead to formulation of several schemes, initiatives, projects, etc., in consultation with the concerned Ministries/ Departments, for the development of ESDM sector in the country.
2. It will enable flow of investment and technology, leading to higher value addition in the domestically manufactured electronic products, increased electronics hardware manufacturing in the country and their export, while generating substantial employment opportunities.

As India is a signatory to the Information Technology Agreement (ITA-1) of the World Trade Organization and Free Trade Agreements (FTAs) with various countries or trading blocs such as ASEAN, Korea and Japan, import from these countries does not attract any customs duty. Therefore it will be difficult to reduce imports from these countries.

The aims under this policy also seem to be over ambitious and difficult to achieve under the given time span.

India also does not have the required skill set and R&D capacity to manufacture and produce at large scale. There are not many initiatives on skilling at the required scale.

Access to technology will also be difficult in the first place.