Context:

• The Union Cabinet gave its approval to the National Policy on Electronics 2019 (NPE 2019), proposed by the Ministry of Electronics and Information Technology.

National Policy on Electronics 2019:

• The Policy envisions positioning India as a global hub for Electronics System Design and Manufacturing – by encouraging and driving capabilities in the country.
• It facilitates for developing core components, including chipsets, and creating an enabling environment for the industry to compete globally.
• The Policy replaces the National Policy of Electronics 2012 (NPE 2012).

Salient Features:

• Create eco-system for globally competitive ESDM sector: Promoting domestic manufacturing and export in the entire value-chain of ESDM.
• Provide incentives and support for manufacturing of core electronic components.
• Provide special package of incentives for mega projects which are extremely high-tech and entail huge investments, such as semiconductor facilities display fabrication, etc.
• Formulate suitable schemes and incentive mechanisms to encourage new units and expansion of existing units.
• Promote Industry-led R&D and innovation in all sub-sectors of electronics, including grass root level innovations and early stage Start-ups in emerging technology areas such as 5G, loT/ Sensors, Artificial Intelligence (Al), Machine Learning, Virtual Reality (VR), Drones, Robotics, Additive   Manufacturing, Photonics, Nano-based devices, etc.
• Provide incentives   and   support   for   significantly   enhancing availability of skilled manpower, including re-skilling. Special thrust on Fabless Chip Design Industry, Medical Electronic Devices Industry, Automotive Electronics Industry and Power Electronics for Mobility and Strategic Electronics Industry.
• Create Sovereign Patent Fund (SPF) to promote the development and acquisition of IPs in ESDM sector.
• Promote trusted electronics value chain initiatives to improve national cyber security profile.

Major Impact:

• The NPE 2019 when implemented will lead to formulation of several schemes, initiatives, projects, etc. for the development of ESDM sector in the country.
• It will enable flow of investment and technology, leading to higher value addition in the domestically manufactured electronic products.
• It will lead to increased electronics hardware manufacturing in the country and their export, while generating substantial employment opportunities.