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Meeting with State Governments on Promotion of Electronics System Design & Manufacturing

Meeting with State Governments on Promotion of Electronics System Design & Manufacturing. 29 th May 2013. “To create a globally competitive electronics design and manufacturing industry to meet the country's needs and serve the international market”. Investment : US$ 100 Billion

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Meeting with State Governments on Promotion of Electronics System Design & Manufacturing

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  1. Meeting with State Governments on Promotion of Electronics System Design & Manufacturing 29th May 2013

  2. “To create a globally competitive electronics design and manufacturing industry to meet the country's needs and serve the international market” Investment : US$ 100 Billion Production : US$ 400 Billion Employment : 28 Million NPE Vision 2020

  3. NPE 2012 : A Holistic Approach

  4. Electronics Manufacturing Clusters • Infrastructure Development • Roads • Power • Water • ETP’s • Testing facilities • Social Infrastructure • Subsidy up-to ~USD 10 mil per 100 acres of land • Applicable to both Greenfield and Brownfield projects • Targeting 10 Clusters in 2013, and 200 by 2020 Subsidy of 50-75%

  5. Modified SIPS • Substantial CAPEX subsidy • Reimbursement of CVD/excise for capital equipment in non-SEZ units • Reimbursement of Central taxes and duties for 10 years in select high tech units like fabs and ATMPs • Available for entire value chain of identified electronics products • Incentives available for 10 years from the date of approval Subsidy of20-25%

  6. Semiconductor Fab • FAB in India • India : Latest destination for Chip mfg. based on strength of Chip design • Global responses sought in the form of EOI to setup Fabs • Leading players have expressed interest • Partners for Fab project to be finalized soon Decision: Expected soon

  7. Preferential Market Access (PMA) • Preference to domestically manufactured electronic goods in • Government procurement • Electronic goods having security implications • Extent of Government procurement from domestic manufacturers will not be less than 30 % of the total procurement. • Twenty Nine electronics and telecom products notified by Ministry for providing preference in Government Procurement • Enabling framework • WTO compatible • No discrimination between foreign and Indian companies

  8. Electronics Development Fund (Proposed) • Size of EDF • Fund to promote Innovation and IP and R&D, product commercialization, etc in ESDM, nano-electronics & IT sectors • Comprises of “Daughter Funds” of size US$ 20 Mil -100 Mil • Each fund to have Govt. share from 25% - 75%; remaining from private and financial institutions US$ 2 Bil

  9. Mandating standards • Order comes into effect from • 15 electronics products notified under safety standards on October 3, 2012 • Allows Self registration • BIS accredited labs to test the goods July, 2013

  10. Export Incentives • Export Incentives on FOB Value • Focused Product Scheme -2% duty credit script • Special Focused Product Scheme-5% duty credit script • Focused Market Scheme 2-5%

  11. Enhancing PhDs in Electronics • To develop an ecosystem for Research, Development and IP creation in ESDM • 2500 PhDs/annum by 2020 in ESDM • Draft Scheme under formulation • Provides for Phase 1 • 500 Full time 1000 part time in 5 years in ESDM , IT/ITES Sector

  12. Electronics and ICT Academies • To improve quality of faculty of institutes/colleges • Physical and Financial Targets • 15 Electronics & ICT Academies • Broad Features • Proposals from individual States/UTs in collaboration with IITs/IIIT/NITs, etc. - • Scheme under approval

  13. State Policies • Karnataka ESDM Policy, 2013 • Electronics Hardware Policy, Govt. of Andhra Pradesh, 2012 • West Bengal Policy on Information & Communications Tech., 2012 • Madhya Pradesh IT Inv. Policy 2012

  14. Status Feb-May 2013 • MSIPS Applications • 12 applications with investment of ~ Rs 4500 crores; • Employment ~ 40,000 • Greenfield EMC Applications • 6 applications with investment of ~Rs 2000 crores • Brownfield EMCs • 12 Brownfield EMCs notified • Other States under process

  15. Role of State Governments • Create a specific policy focused for attracting investment in ESDM sector • Effective single- window clearances • Reliable power etc. • Indentify land for Greenfield EMCs • Japan specific EMC • Taiwan specific EMC etc. • Develop common facilities in existing Brownfield EMCs • Bengaluru, Hyderabad , Sriperumbudur, Noida/Greater Noida, Gurgaon/Manesar, etc.

  16. Role of State Governments…. Contd. • Preference to domestically manufactured electronic goods in major State procurements • Laptops/Tablets • LEDs • Create capacities in Universities and Colleges to take advantage of enhanced PhD programme.

  17. Thank you

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