Electronics policy expected to bring USD 1 billion investment


After final consideration on National Policy on Electronics (NPE), it is expected that the policy could bring in investment of around USD 1 billion by 2015 in the cellular phone segment.

The NEP has proposed steps to achieve the target of USD 750 million to USD 1 billion by expaning existing plants and starting new production facilities. According to ICA, the demand for mobile handsets in the country is expected to grow at the rate of 10 to 12 per cent per annum and will touch 280 million units by 2015.

“These demands can be met by producing handsets locally. The scale of manufacturing would require a stable taxation regime and other related fiscal and non-fiscal incentives both from the Union and State Governments,” Mohindroo said.

Government within a fortnight has already announced two schemes to boost electronics manufacturing ecosystem in the country which is largely dominated by imports.

Electronics industry body ELCINA estimates the current size of electronics industry at present to be around USD 70 billion out of which around USD 40 billion of the requirement is met through imports.

The NPE draft forecasts such imports to touch a humongous USD 300 billion by 2020. However, the scheme is open only for three years by when electronics manufacturing related projects can get approval under this scheme. According to IT minister Kapil Sibal, the proposed NPE should come up for decision in next Cabinet meeting.

The NPE has proposed steps to facilitate a turnover of around USD 400 billion in the domestic electronic industry within the next 8 years and aims to meet the requirement of the industry through indigenous production.


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