Draft policy on electronics aims $400 bn turnover by 2020

The government today unveiled the draft National Policy on Electronics, 2011, which aims at $400 billion turnover in 2020 by the domestic industry and focuses on reducing imports.

Announcing the draft policy, Telecom Minister Kapil Sibal said at the current rate of growth, the domestic production could cater to a demand of $100 billion in 2020 as against demand of $400 billion and the rest would have to be met by imports.

"This aggregates to a demand supply gap of nearly $300 billion by 2020. Unless the situation is corrected, it is likely that by 2020 the electronics import may far exceed oil imports," Sibal said.

One of the objectives is to achieve a turnover of about $400 billion by 2020 involving investment of about $100 billion and employment to around 28 million by 2020.

"The National Policy of Electronics-2011 envisions creating a globally competitive electronics systems design and manufacturing (ESDM) industry, including nano-electronics, to meet the country's needs and serve the international market," Sibal said.

This is a quantum jump from production level of about $20 billion in 2009. This interalia, includes achieving a turnover of $55 billion of chip design and embedded software industry, and $80 billion of exports.

"The final policy on electronics is expected by December. We expect to receive comments on the draft by November," the minister said.

The National Policy on Electronics is aimed at making India the hub of electronic manufacturing.

The policy proposes setting up of over 200 electronic manufacturing clusters (EMCs) and providing assistance for setting up of greenfield EMCs and upgradation of brownfield EMCs.

"I have talked to chief ministers and ministers regarding finding a place for setting up such clusters," he said.

He added that the policy will also provide incentives for setting up of over 200 electronic manufacturing clusters with the world-class logistics and infrastructure.

Another important objective of the policy is to "augumenting post-graduate eduction and to produce about 2,500 Phds annually by 2020".

"For this we need tie-ups with universities and educational institutions like IITs and IIScs to promote such kind of thing," Sibal added.