Modification / Amendments / Clarification in the Electronics Policy (2016-21)

Electronics Policy (2016-21)

Electronics System Design and Manufacturing (ESDM) is one of the largest and fastest growing manufacturing sectors in the world. The Government of India (GoI) has, through its National Policy on Electronics, 2012, contemplated that the demand for electronic goods in India will rise to USD 400 billion by the end of the year 2020. The policy has further contemplated a domestic demand and production gap of nearly USD 300 billion by 2020.

With a view to provide focused attention on boosting manufacturing through increased investment in setting up of ESDM, the Government of India came up with National Policy on Electronics in the year 2012 which has been subsequently revised from time to time. Under the provisions of National Policy on Electronics, 2012, Government of India has issued Schemes and Implementation Guidelines for M-SIPS, Electronics Manufacturing Clusters (EMCs), etc.

In the context of National Electronics Policy and associated emphasis on setting up of Electronics Manufacturing industry in the country, the Government of Gujarat, with a view to providing focused attention on the subject came out with the Electronics Policy for the State of Gujarat (2014-2019) which was notified on 12th November, 2014

Since the notification of Electronics Policy by the State Government, the Government of India has further emphasized the core importance of the sector by focusing on creating facilities 2 for electronics manufacturing within the country through policy revisions. Accordingly, the Government of India has revised M-SIPS Policy and brought in new verticals, simplified approval process, revised threshold for various industry units and has made policy more attractive by introducing production subsidy, etc.

As the Government of India undertook two major campaigns – National Skill Development Mission and Make in India Campaign – it also acknowledged the pivotal role that Electronics Manufacturing Industry can play in economic growth as well as employment creation. The Department of Electronics and Information Technology (DeitY), Government of India estimates that with an electronics manufacturing industry of USD 400 billion direct employment creation of 28 million positions is possible. It has also acknowledged that electronics manufacturing can give a boost to the overall manufacturing sector thus playing a central role in creating right ecosystem to realize benefits of huge demographic dividend that India boasts of.

Consistent with above considerations, various State Governments have also either come out with de novo electronics policy or have revamped their existing electronics policy.

The Electronics Policy of Gujarat, notified in 2014 was cast in overall context of Industrial environment existing in Gujarat. Though Gujarat continues to hold flag position in overall manufacturing sector in the country, the nature of electronics manufacturing sector and evolving technology trends therein position it very differently from other sectors of industry and therefore, require that incentive structure for promoting electronics manufacturing is crafted differently compared to the one done for other sectors of the industry.

In the above background, to ensure that Gujarat positions itself competitively for attracting investments in electronics manufacturing, to benefit from the investment as well as the employment generation and to play a proactive, responsible and lead role in matters of national importance, it became necessary to revisit the provisions of the electronics policy for the State of Gujarat announced in 2014. Accordingly, Government of Gujarat has come out with a 'Electronics Policy (2016 – 2021)'.

The policy referred to above lists out the role of the State Government in creating an enabling environment and provides for different incentives that EMC and ESDM units getting setup or expanded to in Gujarat are entitled to. The objective of formulating a scheme to list out procedure as well as approval mechanism to operationalize the policy in relation to providing assistance to the Electronics System Design and Manufacturing (ESDM) units was under the consideration of the Government. In consideration thereof, the Government of Gujarat resolves as under:

Click here to download Scheme of Assistance for EMCs

Click here to download Scheme of Assistance for ESDM

  • To play a leading role in nation building by facilitating investment in Manufacturing industry to create employment opportunities for citizens and economic growth and prosperity for the state, the nation and its citizens.
  • To set up a globally competitive electronics system design and manufacturing industry with the right eco system in Gujarat which, apart fromcatering to the global and domestic needs of the country, leads towards all round development and inclusive growth of the State.

The State Government is committed to give fillip to indigenous electronics manufacturing by creating a favorable investor-friendly ecosystem across the entire value chain of ESDM sector by:

  • Rolling out a suitable policy framework for introducing a ‘single window dispensation’, towards the establishment of the electronics manufacturing units in the state and for addressing the challenges faced by potential investors and for suitably facilitating access to necessary infrastructural facilities like land, power, water, etc. for the growth of the industry.
  • Proactively helping in building up a sturdy eco-system of innovation, research& development, product design, engineering, assembly & testing, incubation and production for electronics in the state.
  • Promoting indigenously developed and environment-friendly manufacturedhigh-quality electronic products, which can be made available to the people of our state and the country at affordable prices, with a view to furthering socio-economic empowerment and inclusive development.
  • Taking up ESDM sector specific skill development & training programmes.
  • Focusing on promotion and branding of Gujarat as a leading ESDMdestination

The key objectives of this Policy are:

  • To establish Gujarat as a globally-recognized hub for the ESDM industry with a turnover of USD 16 billion by 2021 and an investment of USD 6 billion to create employment opportunities for 5 lakhs people by 2021.
  • To create opportunities for earning forex by import substitution and export promotion to the tune of USD 5 billion by 2021.
  • To initiate effective measures in active collaboration/ partnership with prospective stakeholders in the industry to enhance the availability of skilled manpower in the ESDM sector, for which the State Government will lend support for creation of requisite infrastructural facilities for promoting undergraduate/ postgraduate education and for attracting the students toembark upon the studies/ research for doctorate in this field.
  • To promote creation of Intellectual Property (IP) in the ESDM sector by contributing more funds to R&D in the ESDM and nano-electronics sector
  • To identify and strengthen the Electronics Laboratories of premier engineering/ science colleges in the State and develop them as Centers of Excellence (CoEs) in ESDM sector.
In order to avail benefits under the Electronics Policy 2016-21, the unit shall intimate the Competent Authority in the Government by an Expression of Interest as per Annexure 1 to this scheme.
ESDM shall include the entire value chain of all electronic verticals/ products covered under the National Policy on Electronics and related notifications issued by the Department of Electronics & Information Technology (DeitY), Ministry of Communication & Information Technology, Government of India and will also include computers and peripherals, communication devices, electronic manufacturing services, strategic electronics and its components, industrial electronics, automotive electronics, telecom electronic equipment, information and broadcasting electronic equipment, medical electronics, electronic gaming and electronic toys. The classification of the products covered under this Policy is at Annexure to this policy.
A unit which has obtained an acknowledgement for filing Entrepreneur’s Memorandum (EM) with either District Industries Center (DIC) or Industrial Entrepreneur’s Memorandum (IEM) with Government of India for setting up of manufacturing facility and which commences production/service during the operative period of the policy or within one year from the date of culmination of the policy period.
A unit which has filed EM with the concerned DIC or IEM with GOI and is implementing expansion/diversification in the project during the operative period of the policy.
An expansion and/or diversification with or without forward/backward integration in Gujarat with an investment of more than 50% of its existing gross fixed capital investment on the initiating expansion/diversification during the operative period of the policy.