India’s draft National Policy on Electronics (NPE) released by the Ministry of Electronics and Information Technology (MeitY) has set an ambitious target of creating a $400 billion electronics manufacturing industry by the year 2025, with mobile devices segment accounting for three-fourths of the production. The proposed policy aims to double target of mobile phone production from 500 million units in 2019 to 1 billion by 2025 to meet the objective.
According to the draft electronics policy, the $400 billion turnover shall include targeted production of 1 Billion mobile handsets by 2025, valued at $190 billion (approximately Rs 13 lakh crore), including 600 Million mobile handsets valued at $110 Billion (approximately Rs 7 lakh crore) for export. It also noted that the government plans to end modified special incentive scheme with with schemes that it will find easier to implement such as interest subsidy and credit default guarantee etc.
The draft further indicated that 265 applications with proposed investment of Rs 61,925 crore have been received under M-SIPS as on September 30, 2018, out of which 188 applications with proposed investment of Rs 40,922 crore have been approved and the investment of Rs 8,335 crore has been made by 139 applicants. The policy proposes to push development of core competencies in all the sub-sectors of electronics including electronic components and semiconductors, defence electronics, automotive electronics, industrial electronics, strategic Electronics etc.