Meity planning reboot of NPE; aims to revitalise electronics manufacturing

Meity has set up working group to frame finer contours of new policy

The Ministry of Electronics and Information Technology (Meity) is learnt to be planning an overhaul of the ambitious National Policy on Electronics 2019 (NPE 2019) to revitalise electronics manufacturing in the country and boost exports.

The policy, which was approved by the Union Cabinet five years ago, aims to achieve a turnover of $400 billion for the electronics system design and manufacturing (ESDM) sector by 2025.
 

To frame the finer contours of the new electronics policy, Meity has set up a working group “for the promotion of domestic manufacturing in the sub-sectors of electronics and development of domestic capital industry”, according to sources.
 

This group will review a raft of issues in electronics manufacturing and provide recommendations to overcome those through appropriate tariff structure, incentives, and procedural implications. It will also offer suggestions to boost productivity, create employment generation, and enhance domestic value addition. The group’s report is expected to be submitted to Meity on June 28.
 

Meity’s vision document in 2022 had targeted production of $300 billion by 2025-26 and exports of $130 billion by integrating India with the global value chains.  According to the current estimates, the current policy might fall grossly short of that desired target. In FY24, India’s electronics exports stood at $30 billion, while production touched $115 billion.
 

The working group will also cover key domains, which include mobile phones, information technology (IT) hardware, capital goods, components, consumer electronics, automotive electronics, medical electronics, industrial and strategic electronics, closed-circuit televisions (CCTVs), wearables & hearable devices, and LED lighting, among others.
 

The prominent industry associations part of this working group include the India Cellular and Electronics Association, Manufa­cturers’ Association for Information Technology, Confederation of Indian Industry, Electronic Industries Asso­ciation of India, and Consumer Electr­onics and Appliances Manuf­acturers Association. Among companies, global conglomerates like Apple, Samsung, Google, and home-grown majors like Dixon Techn­ologies, Tata Electronics, and Bhag­wati Products are also part of the group.
 

The NPE 2019 was followed by the introduction of the production-linked incentive scheme, including one for mobile devices and IT products. In February, Rajeev Chandrasekhar, then Union minister of state for electronics and information technology, had said India was targeting a 15-20 per cent share of global electronic global value chains by FY26.

New system in works

Working group to cover areas, such as mobile phones, IT hardware, capital goods, electronics, industrial and strategic electronics, CCTV and IoT, wearables, etc.
 

Expected to submit report by June 28
 

Has members from industry associations, MNCs and homegrown companies
 

Special focus on GVCs, tariff structure, employment, and domestic value addition  
 

NPE 2019 will be short of targets needing a new one