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Esdm India

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Submitted By YogeshChaudhary
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Electronics India
The Second Sunrise

Content
• Why India? • Emerging Opportunities • Policy Environment

Why India ?

1. 3.

4 Big Reasons

Huge Market

2.
Conducive Policy

Large Talent Pool

4.

Low Operating Costs

Electronics Market in India
Burgeoning Needs, Emerging Opportunities

Demand & Production Trends for 2020
450.0 400.0 350.0

400
CAGR – 37%

Demand & Production

300.0 250.0 200.0

150.0 100.0
50.0 0.0 69.6 32.5

Demand CAGR – 24.4%

99.5
CAGR – 15%

2011-12

2012-13

2013-14

2014-15
Year

2015-16

2016-17

2017-18

2018-19

2019-20

Values in US$ Bil

India: 2020

Segment
Telecom Equipment

Market Size *

Laptops, Desktops, Tablets
LED

Electronics Market by segment

Consumer Electronics
Set Top Boxes

Automotive Electronics
Medical Electronics

34 34 35 29 10 10
8.5
* US$ Billions

Conducive Policy Environment
Infrastructure, Incentives, Innovation

National Policy on Electronics, 2012
Holistic, Investor-friendly, Market-driven

NPE Vision 2020
“To create a globally competitive electronics design and manufacturing industry to meet the country's needs and serve the international market”
Investment : US$ 100 Bil Production : US$ 400 Bil Employment : 28 Mil

NPE 2012 : A Holistic Approach
I II III

• Electronics Manufacturing Cluster Scheme (EMC) • Modified Special Package Incentive Scheme (M-SIPS) • Setting up of Semi-conductor Wafer Fab in India

IV
V VI

• Preferential Market Access
• Electronics Development Fund (EDF)

• Mandating Safety Standards
• Human Resource Development

VII

Electronics Manufacturing Clusters
Infrastructure Development • Roads • Power • Water • ETP’s • Testing facilities • Social Infrastructure

• Subsidy upto ~USD 10 mil per 100 acres of land • Applicable to both Greenfield and Brownfield projects

Subsidy of

50-75%

• Targeting 10 Clusters in 2013, and 200 by 2020

Modified SIPS Substantial CAPEX subsidy

• Reimbursement of CVD/excise for capital equipment in non-SEZ units
• Reimbursement of Central taxes and duties for 10 years in select high tech units like fabs and ATMPs • Available for entire value chain of identified electronics products

Subsidy of

20-25%

• Incentives available for 10 years from the date of approval

Semiconductor Fab
FABs in India

Government has approved setting up of two semiconductor fabrication units

• India : Latest destination for Chip manufacturing based on strength of Chip design

Preferential Market Access (PMA)

• Enabling framework • WTO compatible • No discrimination between foreign and Indian companies

• Preference to domestically manufactured electronic goods in Government procurement • Extent of Government procurement from domestic manufacturers will not be less than 30 % of the total procurement.

Electronics Development Fund (Proposed)

Size of EDF

EDF
Typical Daughter fund Daughter fund – infra Typical Daughter fund Daughter fund -Innovation

Typical Daughter fund

•Fund to promote Innovation and IP and R&D, product commercialization, etc in ESDM, nano-electronics & IT sectors •Comprises of “Daughter Funds” of size US$ 20 Mil 100 Mil

US$ 2 Bil

•Each fund to have Govt. share from 25% - 75%; remaining from private and financial institutions

Mandating standards
Order comes into effect from

• 15 electronics products notified under safety standards on October 3, 2012 • Allows Self registration

July , 2013

• BIS accredited labs to test the goods

Export Incentives
Export Incentives on FOB Value

•Focus Product Scheme -2% duty credit scrip •Special Focus Product Scheme-5% duty credit scrip

2-5%

•Focus Market Scheme

HR Initiatives
PhDs in Electronics by 2020

• Electronics and Telecom Sector Skill Council set up • 31 ICT and Electronics Academies-Scheme under approval

• Skill Development for 1 mn persons

2500 annually

• Special Manpower Development ProgrammePhase III for VLSI and chip design for 10,000 students .

Electronics?
Think India !

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