Meeting with State Governments on Promotion of Electronics System Design & Manufacturing 29 th May 2013

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

Setting up of Semi-conductor Wafer Fab in India I Preferential Market Access II Modified Special Package Incentive Scheme (MSIPS) III Electronics Manufacturing Cluster Scheme (EMC) IV Electronics Development Fund (EDF) V Mandating Safety Standards VI Human Resource Development VII NPE 2012 : A Holistic Approach

Subsidy up-to ~USD 10 mil per 100 acres of land Applicable to both Greenfield and Brownfield projects Targeting 10 Clusters in 2013, and 200 by 2020 Electronics Manufacturing Clusters

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 Incentives available for 10 years from the date of approval Substantial CAPEX subsidy Subsidy of 20-25% Modified SIPS

India : Latest destination for Chip mfg. based on strength of Chip design Global responses sought in the form of EOI to setup Fabs Leading players have expressed interest Partners for Fab project to be finalized soon Semiconductor Fab FAB in India Decision: Expected soon

Preference to domestically manufactured electronic goods in Government procurement Electronic goods having security implications Extent of Government procurement from domestic manufacturers will not be less than 30 % of the total procurement. Twenty Nine electronics and telecom products notified by Ministry for providing preference in Government Procurement Enabling framework WTO compatible No discrimination between foreign and Indian companies Preferential Market Access (PMA)

EDF Daughter fund – infra Typical Daughter fund Daughter fund -Innovation Typical Daughter fund Electronics Development Fund (Proposed) Size of EDF US$ 2 Bil 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 Each fund to have Govt. share from 25% - 75%; remaining from private and financial institutions

15 electronics products notified under safety standards on October 3, 2012 Allows Self registration BIS accredited labs to test the goods Mandating standards Order comes into effect from July, 2013

Export Incentives on FOB Value Export Incentives Focused Product Scheme -2% duty credit script Special Focused Product Scheme-5% duty credit script Focused Market Scheme 2-5%

To develop an ecosystem for Research, Development and IP creation in ESDM 2500 PhDs/annum by 2020 in ESDM Draft Scheme under formulation – Provides for Phase 1 – 500 Full time 1000 part time in 5 years in ESDM, IT/ITES Sector Enhancing PhDs in Electronics

To improve quality of faculty of institutes/colleges Physical and Financial Targets – 15 Electronics & ICT Academies Broad Features – Proposals from individual States/UTs in collaboration with IITs/IIIT/NITs, etc. - Scheme under approval CategoryEstimated costTarget for 4 yrs Category A (10)Rs. 25 crore16,000 Category B (05)Rs. 10 crore6,400 Electronics and ICT Academies

Karnataka ESDM Policy, 2013 Electronics Hardware Policy, Govt. of Andhra Pradesh, 2012 West Bengal Policy on Information & Communications Tech., 2012 Madhya Pradesh IT Inv. Policy 2012 State Policies

MSIPS Applications – 12 applications with investment of ~ Rs 4500 crores; – Employment ~ 40,000 Greenfield EMC Applications – 6 applications with investment of ~Rs 2000 crores Brownfield EMCs – 12 Brownfield EMCs notified – Other States under process Status Feb-May 2013

Create a specific policy focused for attracting investment in ESDM sector – Effective single- window clearances – Reliable power etc. Indentify land for Greenfield EMCs – Japan specific EMC – Taiwan specific EMC etc. Develop common facilities in existing Brownfield EMCs – Bengaluru, Hyderabad, Sriperumbudur, Noida/Greater Noida, Gurgaon/Manesar, etc. Role of State Governments

Preference to domestically manufactured electronic goods in major State procurements – Laptops/Tablets – LEDs Create capacities in Universities and Colleges to take advantage of enhanced PhD programme. Role of State Governments…. Contd.

Thank you