In order to promote manufacturing of electronic and telecom products in India, communications and IT minister Kapil Sibal on Monday proposed creating an electronic development fund, very large scale integration (VLSI) specific incubation centres across India and a 10-year stable tax regime for the manufacturing industry.
This is part of the proposed National Policy of Electronics 2011 (NPE2011) released by the minister. The government proposes to achieve a turnover of $400 billion by 2020 involving an investment of about $100 billion. This includes $55 billion in chip design and embedded software industry and $80 billion of exports in the sector. It also aims at ensuring employment to around 28 million in the sector by 2020.
The size of electronic manufacturing industry in India was $20 billion in 2009.
The policy also proposes setting up over 200 electronic manufacturing clusters. Another important objective of the policy is to significantly upscale high-end human resource creation to 2500 PhDs annually by 2020 in the sector.
The draft policy also proposes to provide preferential market access for domestically manufactured electronic products including mobile devices, SIM cards (subscriber identity module) with enhanced features, with special emphasis on Indian products for which IPR reside in India. This is to address strategic and security concerns of the government.