India’s 2018 Draft National Policy on Electronics
India’s 2018 Draft National Policy on Electronics

Nov 20, 2018

The Draft National Policy on Electronics is a long-term government strategy. Its goal is to strengthen the Indian electronics manufacturing industry and raise its value in the global market. The policy began in 2012 with a detailed, multi-year strategy. This was designed to bring the country to the forefront of the global electronics industry by the early 2030s. The policy also aims to strengthen global trade and provide job opportunities in several sub-industries. Since its start 7 years ago, the policy was successful, and the Indian electronics industry is growing quickly. Estimates put its worth at $400B by 2022.

Mobile phone production is also on the rise. Some estimates put domestic production for the 2015-2016 year at 110M units. As of 2018, domestic production of electronics parts had a compound annual growth rate of 26.7% with over 500M units. In 2014-2015, the compound annual growth rate was only 5.5%. This shows the already astonishing growth in the industry. Meanwhile, India’s electronics production was 3.4% of the international market.  [1,2,3]

India’s Draft Policy on Electronics

The National Policy consists of many short-term strategies aiming for long-term results. Some of these include providing incentives for the domestic production of electronic parts. They also provide for the local building of facilities for production. The policy aims to change Indian tax laws on imported parts. For international investors, India is being painted as an attractive opportunity. Other strategies include increasing cybersecurity and shaping the digital mission of the country. This policy aims to give preferential treatment to domestically produced electronics to build a globally trusted electronics market and provide new opportunities for job growth throughout India. It’ll also save money on importation taxes of parts from East Asia. Growing an entire industry is a potentially enormous project.

The fact that the policy has made such great strides in only 7 years is impressive. The growth estimates for the program throughout the 2020s and 2030s are extremely positive. The Indian government recently announced that it’d add an update to the National Policy, which will likely occur in the next few months. This update adds the goal of increasing design opportunities for electronic devices, along with expanding domestic production. By adding opportunities for tech innovation, the government aims to develop devices that will prove vital in the next decade. These electronic devices would be a part of industries ranging from medicine to transportation to defense. [4]

By expanding its policy to include design, India is taking further steps toward becoming a leader in the global market. Government officials say that the update is guided by extensive thought and advice. This comes from industry leaders, shareholders, and other experts. IT Secretary Ajay Prakash Sawhney calls India ideal for innovation because of its many challenges. These challenges are a part of life in many different industries, but Prakash said that’s about to change. He also said he’s optimistic about the country’s future under the guidance of the National Policy on Electronics. The technical details of policy additions haven’t yet been announced, so these will have to wait to be seen. What remains is for the Indian government to provide concrete steps about where the industry should go next. [5]

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