What is National Policy on Electronics?
Historical Background
Key Points
12 points- 1.
The policy aims to create a USD 400 billion electronics manufacturing industry by 2025.
- 2.
It promotes the manufacturing of Electronic Components and Materials (ECM) to reduce import dependence.
- 3.
The policy encourages research and development (R&D) in emerging technologies like 5G, AI, and IoT.
- 4.
It provides incentives for setting up manufacturing units, including capital subsidies and tax benefits.
- 5.
The policy focuses on skill development to create a skilled workforce for the electronics industry.
- 6.
It promotes the development of Special Economic Zones (SEZs) and Electronics Manufacturing Clusters (EMCs).
- 7.
The policy encourages the adoption of industry standards and best practices.
- 8.
It aims to create a secure and reliable supply chain for electronics manufacturing.
- 9.
The policy supports startups and SMEs in the electronics sector through funding and mentorship programs.
- 10.
It promotes exports of electronics goods through various export promotion schemes.
- 11.
The policy emphasizes environmental sustainability in electronics manufacturing.
- 12.
It encourages the use of domestically manufactured electronics products in government procurement.
Visual Insights
Evolution of National Policy on Electronics
Timeline showing the key milestones in the evolution of the National Policy on Electronics.
The National Policy on Electronics has evolved to promote domestic manufacturing and reduce import dependence.
- 1960sEarly efforts focused on public sector units
- 1991Liberalization of the economy opened the sector to private investment
- 2012First National Policy on Electronics introduced
- 2019NPE 2019 launched with a comprehensive approach
- 2024Government extended the tenure of the PLI scheme for electronics manufacturing
- 2025Target of USD 400 billion electronics manufacturing industry
Recent Developments
6 developmentsThe government has extended the tenure of the PLI scheme for electronics manufacturing in 2024.
There is increasing focus on attracting investments in semiconductor manufacturing in India.
The government is promoting the development of a domestic electronics components ecosystem.
Efforts are being made to address the challenges of supply chain disruptions.
The government is working on creating a skilled workforce for the electronics industry through various training programs.
New policies are being considered to further boost electronics exports.
This Concept in News
1 topicsFrequently Asked Questions
61. What is the National Policy on Electronics (NPE) and what are its primary objectives?
The National Policy on Electronics (NPE) aims to develop India's electronics manufacturing ecosystem. Its primary objectives include promoting domestic manufacturing, reducing dependence on imports, creating a globally competitive electronics industry, and generating employment.
Exam Tip
Remember the key objectives: domestic manufacturing, import reduction, global competitiveness, and employment generation.
2. What are the key provisions of the National Policy on Electronics (NPE) 2019?
The key provisions of NPE 2019 include:
- •Creating a USD 400 billion electronics manufacturing industry by 2025.
- •Promoting the manufacturing of Electronic Components and Materials (ECM) to reduce import dependence.
- •Encouraging research and development (R&D) in emerging technologies like 5G, AI, and IoT.
- •Providing incentives for setting up manufacturing units, including capital subsidies and tax benefits.
- •Focusing on skill development to create a skilled workforce for the electronics industry.
Exam Tip
Focus on the USD 400 billion target, ECM promotion, R&D in emerging technologies, incentives, and skill development.
3. How has the National Policy on Electronics evolved over time?
India's electronics manufacturing journey started in the 1960s with a focus on public sector units. The liberalization of the economy in 1991 opened the sector to private investment. The first National Policy on Electronics was introduced in 2012 to address the growing import bill. NPE 2019 was launched to address the shortcomings of the previous policy.
Exam Tip
Note the timeline: 1960s (public sector), 1991 (liberalization), 2012 (first NPE), 2019 (revised NPE).
4. What are the challenges in the implementation of the National Policy on Electronics?
Some potential challenges in implementing the National Policy on Electronics include:
- •Attracting sufficient investment in electronics manufacturing.
- •Developing a robust ecosystem for electronic components and materials.
- •Ensuring effective skill development programs.
- •Keeping pace with rapid technological advancements.
- •Addressing infrastructure bottlenecks.
Exam Tip
Consider factors like investment, ecosystem development, skill development, technology, and infrastructure.
5. What is the significance of the National Policy on Electronics for the Indian economy?
The National Policy on Electronics is significant for the Indian economy because it aims to reduce import dependence, boost domestic manufacturing, create employment opportunities, and enhance India's competitiveness in the global electronics market. It also promotes technological advancement and innovation.
Exam Tip
Focus on import substitution, manufacturing growth, job creation, and global competitiveness.
6. How does the Production Linked Incentive (PLI) Scheme support the National Policy on Electronics?
The Production Linked Incentive (PLI) Scheme provides financial incentives to companies for increasing their production in India. This directly supports the National Policy on Electronics by encouraging domestic manufacturing and attracting investments in the electronics sector. The PLI scheme and the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) support the NPE.
Exam Tip
Remember that PLI provides financial incentives for increased production, supporting domestic manufacturing goals.