India's electronics demand to reach $400 bn by 2020; domestic production can cater to $100 bn demand

New Delhi, Mar 10 (KNN) The demand for electronics in the Indian market is expected to reach USD 400 Billion by 2020, however, the at the current rate of growth, domestic production can cater to a demand of about USD 100 Billion.

In a written reply in Parliament, Commerce & Industry Minister Nirmala Sitharaman said, “As mentioned in the National Policy on Electronics (NPE 2012), the demand for electronics in the Indian market is expected to reach USD 400 Billion by 2020. Without intervention, at the current rate of growth, domestic production can cater to a demand of about USD 100 Billion by 2020.”

Meanwhile, the value of imports of electronics goods during the period April-December 2015 was USD 31.06 Billion.

Government has taken several steps to promote Electronics Hardware Manufacturing in the country including promotion of electronics hardware manufacturing is through ‘Digital India’ campaign.

Modified Special Incentive Package Scheme (M-SIPS) provides financial incentives to offset disability and attract investments in the electronics hardware manufacturing including chip manufacturing. The scheme provides subsidy for investments in capital expenditure - 20% for investments in Special Economic Zones (SEZs) and 25% in non-SEZs.

Electronics Manufacturing Clusters (EMC) Scheme provides financial assistance for creating world-class infrastructure for electronics manufacturing units.

Further, the Minister said that the policy for providing preference to domestically manufactured electronic products in Government procurement is under implementation.

Electronic Development Fund (EDF) policy has been approved to support Daughter Funds including Early Stage Angel Funds and Venture Funds in the area of Electronics System Design and Manufacturing, Nano-electronics and IT. The supported Daughter Funds will promote innovation, R&D and product development within the country.

A meeting of State IT Ministers and State Government Officials was held on 26.08.2014 to encourage them to actively promote electronics manufacturing. Several States have shown keen interest.

Other steps have also been taken by the government to promote electronics manufacturing in the country. (KNN Bureau)