Electronics Sector Current Affairs - 2019
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The Minister of Electronics and Information Technology (MeiTY) Shri Ravi Shankar Prasad unveiled a series of new initiatives at the Start-Up Summit at New Delhi
Highlights of the summit
- The MeitY Startup Hub was launched. The Hub will facilitate the vision of the Ministry towards technology, startups, innovation and creation of intellectual properties. The Software Technology Parks of India will act as the nodal agency in implementing the scheme
- The summit aims to bring the key stake holders and startups of Artificial Intelligence (AI) and Internet of Things (IoT) together
- During the summit the entrepreneurs and startups will share effective techniques and strategies.
- The participators of the summit will also work together to bring in focus of venture capital and government around their processes and strategies.
Highlights of the Ministers’ speech in the event
- “Reform, Preform and Transform” are the key focus areas of the GoI
- The Transformation Technology schemes in India are playing a vital role. It includes Digital India, make in India, Startup India and Smart Cities
- The Digital Initiatives like eNam, Digital payments and eVisas have shown tremendous maturity and growth
- Around 1.25 lakh Gram Panchayats are connected to optical fiber.
- The TIDE-Technology Incubation and Development of Entrepreneurs launched in 2008 and the TIDE 2.0 version launched in June 2018 has multi prolonged approach in diverse areas like ICT, management and Electronics.
Tags: Communication • Digital India • Electronics • Electronics Sector • ICT
Union Ministry of Electronics and Information Technology (MeitY) has issued draft ‘National Policy on Electronics 2018’ (NPE 2018) for Electronics System Design and Manufacturing (ESDM) Sector of India. It sets ambitious target of creating $400 billion electronics manufacturing industry by 2025, with mobile phone devices segment accounting for three-fourths of production.
Draft National Policy on Electronics (NPE)
Draft NPE aims to promote domestic manufacturing in entire value-chain of ESDM sector for spur economic development in the country. It also aims to double the target of mobile phone production from 500 million units in 2019 to 1 billion by 2025 to meet objective.
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 expansion of existing units in electronics manufacturing sector.
The set target of $400 billion turnover under it, includes targeted production of 1 billion mobile handsets by 2025, valued at $190 billion (approximately Rs. 13 lakh crore) and also 600 million mobile handsets valued at $110 billion (approximately Rs. 7 lakh crore) for export.
It also proposes to push development of core competencies in all sub-sectors of electronics including electronic components and semiconductors, automotive electronics, defence electronics, industrial electronics, strategic electronics etc. It also proposes to set up 20 greenfield and three brownfield electronic manufacturing cluster projects have been sanctioned with project outlay of Rs 3,898 crore, including Rs 1,577 crore from Central Government.
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. The proposal includes increasing tax benefits on expenditure incurred on R&D, enhancing rate of duty drawback for electronics sector, reimbursement of state levies and other levies for which input tax credit is not available, allowing duty free import of second-hand capital goods for electronics hardware manufacturing etc. 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.