Press Information Bureau

Government of India

Ministry of Communications & Information Technology

18-December-2012 18:02 IST

Indian electronics hardware production constitutes only around 1.3% of the global hardware production and it is estimated that demand of electronics products and systems in India is expected to grow to USD 400 Billion by 2020. This was stated by Shri Kapil Sibal, Union Minister for Communications and IT, while addressing the Consultative Committee meeting of the ministry. He pointed out that at the conventional rate of growth of domestic production, it would only be possible to meet demand of about USD 100 Billion by 2020. The Government recognizes that sustaining growth in IT and telecom is hugely dependent on our ability to foster Electronics System Design and Manufacturing (ESDM) in the country, he added.

The minister said that while there have been concerted efforts for rapid growth of the electronics (including telecom) hardware manufacturing sector in the past like 100% FDI permitted under automatic route, no Industrial license requirement, these efforts have not led to a substantial impact. He also pointed out that given India’s growing strength in chip design and embedded software, the increasing importance of design in product development has the potential to make India a favoured destination for ESDM.

The minister went on to outline some of the initiatives that have been taken for the development of electronics (including telecom) hardware manufacturing in the country:

• National Policy on Electronics (NPE) 2012

• National Telecom Policy – 2012 (NTP-2012) • Electronics Manufacturing Clusters (EMC) Scheme

• Modified Special Incentive Package (M-SIPS) Scheme

• Setting up Semiconductor Wafer Fabrication Units

• Preference to Domestically Manufactured Electronic Goods (Preferential Market Access)

• Notification by the Department of Telecommunications (DOT) on 5th October 2012 for Government Procurement and Government funded projects

• Electronics Development Fund (EDF)

• Scheme for mandatory registration of identified Electronic Products for meeting specified safety standards

• Export Promotion Scheme for ESDM Industry

• According Priority Sector Status to IT purchases

• Declaring Mobile phones as goods of special importance under the CST Act, 1956

• Communication and Marketing

Members of Parliament attending the meeting raised a number of issues concerning posts, telecom and IT. Members underlined the need for adequate number of post offices. Some members also pointed out the problem of connectivity on BSNL, especially in rural areas and on highways. A member raised the issue of the difficult conditions of Dak Sevaks. A member raised the issue of inadequate handling of e-waste and desired a sysem be created for dumping of e-waste. A member welcoming the initiative to encourage ‘electronics manufacturing’, urged for strengthening the existent public sector industry

The following members of Parliament were present at the meeting: Shri PK Biju, Shri Sanjay Nirupam, Shri SG Naik, Shri Shivraj Singh Lodhi and Shri Vinay Pandey. Also present were Minister of State for Communications and IT, Dr. (Smt.) Kruparani Killi, Secretaries for the Departments of IT, Posts and Telecom and other senior officers of the ministry of Communications and IT.

MV

Preferential Market Access for domestically manufactured electronics to stimulate local ESDM through procurement and standards-based measures. Initiatives expand domestic Electronics System Design and Manufacturing (ESDM) through policy and incentives including the National Policy on Electronics, Electronics Manufacturing Clusters, M SIPS, semiconductor fabrication facilitation, and an Electronics Development Fund; complemented by market pull measures such as Preferential Market Access, DOT procurement notifications for government projects, mandatory product registration for safety standards, export promotion, and priority sector treatment for IT purchases.