Industrial Sector Updates – Industrial Policy, Ease of Doing Business, etc.

National Policy on Electronics 2019


Mains Paper 3: Economy | Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth

From UPSC perspective, the following things are important:

Prelims level: NPE 2019

Mains level: India’s ESDM sector


  • 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

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

Salient Features

  1. Provide incentives and support for manufacturing of core electronic components
  2. Provide special package of incentives for mega projects which entail huge investments, such as semiconductor facilities display fabrication, etc.
  3. 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
  4. Provide incentives and support for significantly enhancing availability of skilled manpower, including re-skilling
  5. Special thrust on Fabless Chip Design Industry, Medical Electronic Devices Industry, Automotive Electronics Industry and Power Electronics for Mobility and Strategic Electronics Industry
  6. Create Sovereign Patent Fund (SPF) to promote the development and acquisition of IPs in ESDM sector.
  7. Promote trusted electronics value chain initiatives to improve national cyber security profile.

Major Impact

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