Business / Industry Sectors
India’s Minister for Information Technology & Communications visits Israel

On the occasion of the visit to Israel by India's Union Minister for Information Technology and Communications, Mr. Kapil Sibal, the Embassy of India organized a business seminar on 16 June, 2013 in Tel Aviv.

At this seminar, the Minister spoke about India's new Electronics Policy and invited Israeli companies to collaborate and invest in enhancing R&D, Design and manufacturing in sectors such as information technology,
office automation, strategic electronics (defence, atomic energy, railways, power, space), consumer electronics, industrial electronics, automotive electronics, avionics, solar photo voltaic, LED, electronic components and
manufacturing systems; semi-conductors, handling e-waste, information and broadcasting (set-top boxes), electronic games and toys etc.

The seminar offered an excellent opportunity for Israeli industry to know more about the fast-growing electronics market in India, and the wide-ranging opportunities for collaboration.

Background on new electronics policy:

National Policy on Electronics 2012


India is one of the fastest growing markets of electronics in the world. Demand for electronics in the Indian market was US$45 billion in 2008-09 and is expected to reach US$400 billion by 2020. Domestic production in 2008-09 was about US$20 billion. It is expected that there will be a demand-supply gap of nearly US$300 billion by 2020. Indian electronics hardware production constitutes only around 1.31% of global production.

Although India is a recognized global player in software and software services sector it lags behind in electronics hardware manufacturing capabilities. India is increasingly becoming a destination for chip design and embedded software. The Government’s vision is to transform India into a global hub for electronics system design and manufacturing (ESDM) to meet growing domestic and global demand.

Given India’s growing strength in chip design and embedded software, the increasing focus on design in product development has potential to make India a favoured destination for ESDM. There is potential to use capabilities so created to successfully export ESDM products from India to other countries. The National Policy on Electronics aims to transform India into a premier ESDM hub.


Main objectives of The National Policy on Electronics:


  • Develop capacities for manufacture of strategic electronics in India.
  • Promote a vibrant and sustainable ecosystem of R&D, design and engineering and innovation to enhance manufacturing capabilities in electronic raw materials, components, sub assemblies as well as products.
  • Develop high-quality electronic products at affordable prices for adoption and deployment to improve productivity, efficiency and ease of operations in other sectors.
  • Provide attractive fiscal incentives across value chain of ESDM sector to eliminate disability costs in manufacturing and mitigate relatively high cost of finance. 
  • Facilitate setting up of semiconductor wafer-fab facilities and its eco-system for design and fabrication of chips and chip components. 
  • Provide incentives for setting up over 200 Electronic Manufacturing Clusters (EMCs) with world class logistics and infrastructure and easy to do business facilities.
  • Provide assistance to set up “Greenfield EMCs” and upgrade “Brownfield EMCs”
  • Support development of appropriate infrastructure to support EMCs including development of logistics hub, port-to-factory linkages, roads and highways.
  • Rationalize and establish industry-friendly stable tax regime conducive to attract global investments and encourage electronics sector through appropriate fiscal incentives and taxation mechanisms.”
  • Provide a 10 year stable tax regime for ESDM sector.
  • Technology transfer, R&D and IPR creation through friendly tax regime.
  • To facilitate Foreign Direct Investment in ESDM sector.
  • Promote manufacturing capacities for sourcing ESDM in strategic and core infrastructure sectors - Defence, Atomic Energy, Space, Railways, Power, Telecommunications, etc.”
  • Enable defence offset obligations for electronic procurements to be met through ESDM products.
  • Create an Electronic Development Fund to promote Innovation and IP and R&D, commercialization of products, etc. in ESDM, nano-electronics and IT sectors, including mobile applications by providing appropriate funding/ incentives to industry/ academic/ R&D institutions.
  • To set up Incubation Centres for VLSI and other ESDM related sectors
  • Design and develop India Microprocessor for diverse applications.
  • Promote development of e-waste recycling industry for domestically produced e-waste.
  • Funds would be mobilized from private sector/banks/financial institutions and other private equity organizations for leveraging contribution of Government to Electronic Development Fund.
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