With the aim of reducing electronics imports and promoting indigenous production, the government on Monday unveiled the draft National Policy on Electronics, 2011.
The policy aims at addressing the $400 billion domestic electronics industry by 2020. Besides, the draft policy expects to create employment opportunity for around 28 million by 2020.
The demand for electronics hardware in the country is projected to reach $400 billion by 2020 resulting in a huge demand-supply gap and dependence on imports.
By promoting manufacturing within India, the government expects to reduce the dependence on imports.
Announcing the draft policy, Telecom Minister Kapil Sibal said at the current rate of growth, the “domestic production can cater to a demand of $100 billion in 2020 against a demand of $400 billion. Unless the situation is corrected, it is likely that by then the electronics import may far exceed oil imports.” The production level was $20 billion in 2009.
The draft policy plans an investment of about $100 billion. The policy is aimed at making India the hub of electronic manufacturing by setting up of over 200 electronic manufacturing clusters. “The National Policy of Electronics, 2011 envisions creating of an electronics systems design and manufacturing industry, including nano-electronics, to meet the country’s needs and serve the international market,” Sibal said.
Another important objective of the policy is to “augmenting post-graduate education and to produce about 2,500 Phds annually by 2020”.
The minister said a combination of three interdependent and synergistic policies for information technology, telecom and electronics are being formulated.
The Department of Information Technology would also be renamed as the Department of Electronics and Information Technology to reflect the desired focus on electronics.
“The final policy on electronics is expected by December. We expect to receive comments on the draft by November,” the minister said.
