24:22
Policy Watch - National Policy on Electronics
Sansad TV
Overview
This video discusses India's National Policy on Electronics 2019, which aims to transform India into a global hub for electronic system design and manufacturing. The policy seeks to achieve a $400 billion turnover in the electronics sector by 2025, create significant employment, and boost domestic production, including 1 billion mobile handsets. It builds upon the progress made since the 2012 policy, acknowledging the pervasive impact of electronics across all sectors. The discussion highlights key initiatives, the growth in mobile manufacturing, the importance of developing a robust hardware ecosystem, the potential of emerging technologies like IoT and AI, and the strategic focus on sectors such as defense, automotive, medical electronics, and chip design. The policy also emphasizes strengthening the supply chain, promoting indigenous manufacturing, enhancing cybersecurity through domestic production, and fostering intellectual property through a Sovereign Patent Fund.
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Chapters
- The National Policy on Electronics 2019 aims to position India as a global center for electronic system design and manufacturing.
- Key objectives include achieving a $400 billion turnover by 2025, generating 10 million job opportunities, and producing 1 billion mobile handsets domestically.
- This policy supersedes the 2012 version, recognizing the significant growth and evolving landscape of electronics manufacturing in India.
- Electronics are now integrated into every sector, necessitating a broader approach beyond just manufacturing consumer electronics.
This policy sets ambitious national goals for the electronics sector, signaling a strategic shift towards making India a manufacturing powerhouse and creating economic opportunities.
The policy aims to produce 1 billion mobile handsets in India by 2025.
- India has seen substantial growth in mobile handset manufacturing, increasing from 60 million units in 2014 to over 225 million in 2017-18.
- To achieve export competitiveness, India must move beyond domestic demand and focus on producing cost-effective products for global markets.
- The Phase Manufacturing Program (PMP) encourages companies to manufacture sub-assemblies and modules in India through small duty differentials.
- The number of mobile manufacturing companies has surged from two in 2014 to 127, with accessory manufacturers also growing significantly.
This chapter illustrates how targeted policies and incentives can rapidly transform a sector, demonstrating India's capability in large-scale manufacturing and its potential for global export.
The number of Surface Mounted Technology (SMT) lines, crucial for PCB assembly, has increased by 75% in the past 1.5 years, supporting mobile handset production and other electronics.
- Historically, India excelled in software but neglected hardware manufacturing, leading to reliance on imports for critical components.
- The new policy aims to facilitate hardware manufacturing and create an environment where India can produce its own electronic goods.
- Developing indigenous capabilities in component manufacturing is crucial, as many advanced technologies rely on proprietary know-how held by a few global companies.
- Significant investment in R&D and university-industry collaboration is needed to keep pace with emerging technologies like AI and develop new chip architectures.
This section highlights a critical historical gap in India's technological development and emphasizes the necessity of a strong domestic hardware foundation for true self-reliance and innovation.
Despite having brilliant minds in areas like liquid crystal displays, India could not leverage this knowledge domestically, with Japan and Korea benefiting instead.
- The policy focuses on integrating India into the global electronics supply chain by encouraging the manufacturing of sub-assemblies and components, not just final products.
- A complete ecosystem with component suppliers and sub-assembly manufacturers is essential for moving into new product development.
- Internet of Things (IoT) and 5G technologies are key areas where India needs to develop its own capabilities and components, rather than solely relying on imports.
- Indigenous development of technologies, similar to China's strategy of acquiring and adapting foreign technology, is vital for long-term growth and security.
This chapter explains how a robust and integrated supply chain is fundamental to leveraging new technologies and achieving global competitiveness in the electronics sector.
The Samsung factory inauguration near where the speaker lives signifies the rapid technological advancements and the move towards 5G, requiring new component development.
- The policy aims to expand beyond mobile manufacturing into high-growth sectors like medical electronics, automotive electronics (especially for electric vehicles), and strategic/defense electronics.
- Power electronics, driven by the rapid adoption of renewables and smart meters, presents another significant manufacturing opportunity.
- Chip design is a critical focus area, leveraging India's strength in software to develop innovative products and services for the global market.
- Emphasis is placed on indigenous manufacturing for defense and strategic sectors to ensure security and self-reliance.
This section demonstrates the policy's broad vision to leverage India's manufacturing capabilities across diverse and critical sectors, fostering innovation and national security.
The potential for manufacturing smart meters domestically, rather than importing them, represents a large opportunity driven by government programs.
- Manufacturing chips and components domestically enhances cybersecurity by ensuring the absence of embedded malware or backdoors.
- Indigenous production provides greater control and certainty over the components used in critical infrastructure and defense systems.
- India's strength in software development can be integrated into chip design, creating more secure and advanced electronic systems.
- A Sovereign Patent Fund is proposed to develop or acquire core technologies and patents, making them accessible to the Indian ecosystem and reducing IP costs.
This chapter addresses the critical link between domestic manufacturing and national security, particularly in cybersecurity, and outlines a strategy to build India's intellectual property portfolio.
The Sovereign Patent Fund aims to identify key technologies in the top 20 imported electronic items and either develop or acquire patents for them to benefit Indian manufacturers.
Key takeaways
- India's National Policy on Electronics 2019 is a strategic initiative to become a global manufacturing hub, moving beyond assembly to value-added production.
- Significant progress has been made in mobile manufacturing, but future growth hinges on export competitiveness and developing a comprehensive supply chain.
- A strong domestic hardware manufacturing base is essential for India's technological self-reliance and innovation.
- Emerging technologies like IoT and AI require indigenous component development to avoid future dependencies.
- Diversifying into sectors like medical, automotive, and defense electronics offers substantial growth and strategic advantages.
- Indigenous manufacturing of electronics is crucial for bolstering national cybersecurity and reducing vulnerabilities.
- The Sovereign Patent Fund aims to strengthen India's intellectual property position and reduce the cost of technology adoption for domestic industries.
Key terms
National Policy on Electronics 2019Electronic System Design and Manufacturing (ESDM)Global HubTurnoverMobile Handset ManufacturingPhase Manufacturing Program (PMP)Sub-assembliesComponentsHardware ManufacturingResearch and Development (R&D)Internet of Things (IoT)5G TechnologyMedical ElectronicsAutomotive ElectronicsElectric Vehicles (EVs)Strategic ElectronicsDefense ManufacturingPower ElectronicsChip DesignCybersecurityMalwareSovereign Patent FundIntellectual Property (IP)
Test your understanding
- What are the primary goals of India's National Policy on Electronics 2019?
- How has the Phase Manufacturing Program (PMP) contributed to the growth of mobile manufacturing in India?
- Why is developing a domestic hardware manufacturing ecosystem considered crucial for India's technological advancement?
- How does the policy aim to strengthen India's position in emerging technologies like IoT and 5G?
- What is the significance of the Sovereign Patent Fund in promoting indigenous innovation and competitiveness?