New policy to boost Electronics manufacturing

By siliconindia   |   Wednesday, 13 April 2011, 01:33 IST
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New policy to boost Electronics manufacturing
New Delhi: Taskforce reported that the demand for electronic goods stood at $ 45 billion for FY 09 and for domestic products stood at $ 20 billion. The demand is said to grow in the next 10 years and touch $29 billion by FY 20, if the production continues to grow at the rate of 16 percent. With respect to this, Semiconductor and Electronic industry, the Government plans to set up an Empowered Committee to examine measures to attract investment in water fabrication units. Taskforce submitted it's recommended a policy prescription to impel hardware and electronics manufacturing. industry. It includes the areas like creation of Nation Electronic Mission, creation of a committee to oversee India's semiconductor wafer fabrication prospects. Taskforce has suggested the following polices: "National Electronics Mission" for fresh thrust on electronics. "Approval process" to initiate modified SIPS with easier provisions. Empowered Committee to suggest ways to attract investment in wafer fabs. Policy push takes off from IT taskforce report of 2009. Kapil Sibal, Communications and IT Minister, said that a modified Special Incentive Package Scheme (SIPS) for "electronics eco system' units has already been drafted and "approval process on the same has been initiated". But he did not commit a timeframe for its launch. The modified SIPS will focus on incentives mainly for electronics and telecom equipment manufacturing. But it is not yet clear which product categories are to be included in the modified SIPS. Previously the version of SIPS was failed to produce the desired results despite attracting proposals worth Rs 2.29 lakh crore. It was developed as an integrated scheme for semiconductor fabs and ecosystem units.

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