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Electronics Sector in India
INVESTMENT & TECHNOLOGY PROMOTION DIVISION
MINISTRY OF EXTERNAL AFFAIRS
NEW DELHI
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Electronics
• Indian Electronics System Design and Manufacturing
(ESDM) industry is one of the fastest growing sectors in
the country.
• Changing global landscapes in electronics design and
manufacturing capabilities, and cost structures have
turned the attention of global companies towards India.
• State of Play:
− 65% of the electronics is currently imported;
− 25-30% of the systems simply assembled;
− less than 10% of the electronic systems are
completely designed and manufactured in India.
− Almost 100% of semiconductors are imported.
• Domestic production can cater to a demand of only $100
Bn by 2020… demand-supply gap of $300 Bn.
Electronics imports, are currently the 3rd highest, next to crude and gold.
Top 10 electronic products contributing about 70% by
total revenue include:
• Mobile Phones
• Flat Panel TVs
• Notebooks
• Desktops
• Digital Camera
• Inverters & UPS
• Memory Cards &
USB Drivers
• 4W EMS
• LCD Monitors
• Servers
$35 bn
$34 bn
$34 bn
$29 bn
$12 bn
$10 bn
$10 bn
LED
Telecom Equipment
Laptops/Portables
Consumer Electronics
Medical Electronics
Set Top Boxes
Automotive Electronics
Segment: 2020 Mkt. Size
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State of Play of ESDM Industry
• The different segments within the ESDM industry are at
varying stages of development.
• Electronics applications markets such as telecom electronics,
automotive electronics, consumer electronics and industrial
electronics, are at different stages of ecosystem development.
• Focus currently on providing impetus to take advantage of the
dormant capabilities across the various electronics markets
and developing the missing links to make local ESDM sector
globally competitive.
• The ESDM industry in India comprises the following four key
components:
1. Electronic Products
2. Electronic Components
3. Semiconductor Design
4. Electronics Manufacturing Services (EMS)
• The first two represent products while the latter two highlight
the services opportunities catering to the domestic and
export markets.
The following 20 product markets accounts for 80% of
the overall electronics revenues
• Mobile Phones
• Digital Camera
• LCD Monitors
• Set Top Box
• CFL
• Notebooks
• Memory cards
and USB drivers
• Base Stations
• Routes / Switches
• Digital Instrument
Clusters
• FPD TV
• Inverters and UPS
• Servers
• Printers and FPDs
• Energy Meters
• Desktops
• 4W EMS
• Power Supplies
• Car Radio
• Smart Cards
120%
54%
38%
19%
10%
Products with tremendous growth potential:
Telecommunications
(PON, GPON ONT)
IT/OA
(Tablets)
Industrial Electronics
(LED lighting)
Payment Terminals
Automotive Electronics
(2W ignition)
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India – Strengths and Opportunities
• Huge Consumption Market
• Strong Design and R&D Capability in Select Products -
Auto electronics, industrial etc.
• Government Schemes a Good Demand Generator -
tablets for education sector, Digital India, broadband
push etc.
• Adequately Developed EMS Industry - to be a
significant contributor to ecosystem development
• Enormous Resident Talent in Semiconductor Design
and Embedded Software
STRENGTHS
• Significant Local Demand as a Influencer for
Investment Attraction
• Rising Manufacturing Costs in China Leading to India as
Alternate Destination
• Government Policies - MSIPS, EMC, local FABs etc.,
Favour Attracting Manufacturing Investments
• Export Potential - huge consumption market in ME;
emerging growth markets of North Africa and Latin
America
• Existing R&D Capabilities can be Encouraged to
Develop ‘Made in India’ Products and Generate Local
IP
OPPORTUNITIES
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The most common components that go into the Bill of Materials (BoM) for manufacturing electronic products include the
following:
Manufacturing Opportunity
• Power devices and semiconductors
• Processor
• Memory
• Printed circuit board (PCB)
• LCD display
• Transformer
• Absence of a local fab implies complete reliance on
imports for these components.
• India’s FAB initiative is expected to usher at least 2
semiconductor fabs facilities in the foreseeable feature.
• Given the numerous applications that require processing
capability, creating an India-specific processor design,
and fabricating them in local chips shall ensure a
significant contribution to the local value addition.
1. Semiconductors
India Opportunity
• Global hub for VLSI and board design
• Strong third party design service providers
• Huge domestic electronics consumption market
• Presence of R&D and design centres of the top 23
global semiconductor majors
India Opportunity
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Manufacturing Opportunity (contd..)
• India has a good number of PCB manufacturers in the country.
• However the local capability is restricted to producing single,
dual and multi layered PCBs of up to 8-12 layers.
• The PCBs needed in telecom, consumer and automotive
applications, which require complex multi-layered PCBs are
imported.
• Need for design and manufacturing of multi-layered PCBs of
up to 64+ layers.
2. Printed Circuit Board (PCB)
India Opportunity
• PCB manufacturing capability exists locally
• Strengths in single, dual layers
• Capability to do multiple layers too
for less complex applications
• Export market exists
India Opportunity
• India possesses local design and manufacturing capabilities
for some of the end use products. However, the cost of
production of panels and its technology-intensive nature
have kept India void of an LCD display
assembling/manufacturing unit hitherto.
• High volume demand anticipated in the various products
that consume displays, makes it pertinent to grow the
ecosystem for LCD displays locally.
3. LCD Displays
India Opportunity
• Huge consumption demand
• End use product manufacturing through OEMS and
EMS exists
• Favourable incentives for panel
manufacturing available under MSIPS
India Opportunity
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Manufacturing Opportunity (contd..)
• Consumer and industrial electronics segments drive
the demand for transformers.
• Market is dominated by small scale indigenous
manufacturers.
• Reliance on import for raw materials,
specifically copper.
4. Transformers:
India Opportunity
• Preferential excise duty for transformer
manufacturing: tax rebates.
• Subsidies on logistic costs of copper import to reduce
product landed cost
• Special interest loans for working capital for SME
India Opportunity
Products seeing the fastest growth
1. Set Top Box (STB):
Demand Drivers: Cable TV Networks (CTN) Amendment Bill 2011
mandates digitization of TV broadcasts pan India by 2014 &
Introduction of HD channels and smart TVs.
Technology: Hybrid STBs integrating video content from multiple
signal sources - TV, premium VoD, and Internet-based video services,
and providing value-added capabilities like time shifting, and
distributing content to a variety of viewing devices including multi-
room TV networks, personal computers, portable media players, and
other mobile devices
2. Medical Electronics:
Demand drivers: Burgeoning middle-class, rising incomes,
urbanization, rise in lifestyle diseases, and awareness about benefits
of healthcare delivery system. Moreover, India’s healthcare
expenditure is nearly 4% of the GDP.
Technology for India: Development of miniaturized, multifunctional,
ultra-low power, portable, and reduced cost devices for patient
monitoring, imaging, implantable, therapeutic, and surgical
requirements. Wearable devices to aid physicians offer extended care
outside the clinical environment.
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Products seeing the fastest growth (Contd..)
3. Auto electronics:
Potential:
• Cost of Auto Electronics content as % of total
automobile cost in India is expected to double from
23% to 45% over the period 2010-2030 as per
McKinsey ACMA Report 2015
• High-end car models feature more auto electronics
with larger and more complex electrical systems.
• Electronic accessories in demand: Satellite navigation
systems, remote security systems, ADAS, traffic control
systems etc.
• India has close to 20 million passenger vehicles on the
road. More and more consumers are looking for
electronic features in their cars (parking cameras, tyre
pressure warning systems, parking sensors etc.
Investments in Auto Electronics
• Companies exploring opportunities in India:
Motherson Sumi Systems, Bosch India,
Magnetti Marelli, Calsonic Kansei and
Continental Automotive.
• Established foreign players: Johnson Controls
and Denso have established presence in India
through JVs.
• Auto Electronics industry…currently at a nascent stage
• Lagging behind its foreign counterparts in terms of capacity and R&D capability.
• Product conceptualization and designing of electronic components is typically undertaken by OEMs…Indian vendors focusing on assembling
the imported parts.
Target
• Department of Electronics and Information
Technology (GOI) has set an aggressive target of
reaching US$10 billion market size in Auto
Electronics by 2020 which is 3x the current
market size.
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Policy Initiatives
Promoting
exports
Favorable
eco-system
Focus on
Human
resource
development
Developing
and
mandating
electronics
standards
Focus on
strategic
electronics
Focus on
innovation
and R&D
Strategies
• The Indian Government has instituted a number of
forward-looking policies to foster the growth of the Indian
electronics ecosystem.
• Policies aimed at holistic development of the ESDM
industry by offering specific incentives for the
development of each element in the value chain. These
forward looking policy measures include:
 National Policy on Electronics
 MSIP Scheme
 Fab policy
 EMCs and ITIRs
 Preferential Market Access
 Electronic Development Fund
 PhD Scheme
 Export Incentives
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National Policy on Electronics
• Achieve a turnover of $400Bn by 2020 by investing $100Bn and providing employment to around 28Mn.
• Build a supply chain of raw materials, parts & electronic components and raise local production from present 20~25% to
over 60%.
• Develop & Mandate standards for electronic products.
• Increase fund flow for R&D, seed & venture capital for start-ups in ESDM & nano-electronics.
• Setting up of over 200 Electronic Manufacturing Clusters (EMCs).
• Enhance skill availability: 2500 PhDs annually by 2020.
Electronic Hardware Technology Park
• For encouraging exports of electronic hardware items
 Duty free import of inputs as required by it for manufacture, services, production and
processing.
 100% FDI, excise duty free on indigenous goods.
 Sales are deemed exports and will get benefits under the Foreign Trade Policy.
• Export profits 100% tax exempt
• DTA sales permissible up to 50% of FOB value of exports, subject to fulfilment of positive
NFE(Net Foreign Exchange)
• This scheme is a part of India’s Foreign Trade Policy 2015-20
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MSIP Scheme
Modified Special Incentive Package Scheme (MSIPS) - 2015:
• Promotes investments in the Electronic System Design & Manufacturing (ESDM) sector
• To avail scheme, application to be sent to Dept. of Electronics & IT.
Financial incentives include:
• Subsidy of 25% on Capex if the ESDM unit is in non-SEZ.
• Subsidy of 20% on capex if within SEZ.
• Capex subsidy available for investments made within 10 years from date of approval.
• 200% deduction on R&D for setting up electronic chip manufacturing unit
• Reimbursement of CVD/excise on capital equipment for non-SEZ units.
• Reimbursement of central taxes and duties (like custom duties, excise duties and
service tax) for 10 years in select high- tech units like Fabs, Semiconductor Logic and
Memory chips, LCD fabrication.
• Refund of capex for new units or for expansion of more than 25% of existing capacity in
a DeitY Notified Greenfield or Brownfield Electronics manufacturing cluster for
production of products across ESDM value chain.
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MSIP: Manufacturing List - 2015
ELECTRONIC PRODUCTS
• Telecom products: Optical fibers and optical fiber cables, headends.
• IT Hardware products : Automatic Teller Machines(ATMS).
• Consumer Electronics: Audio Video Products, Electronic Watches and Clocks, electronic toys,
wearable electronics, electronic personal care products.
• Automotive Electronics: Brushed DC Motors, etc.
• Bio-metric and identity devices/RFID: Smart Card manufacturing and personalization
• Consumer Appliances like Refrigerators, ACs, Fully Automatic Washing Machines,
Microwaves Oven, etc.
• Machine to Machine (M2M) and Internet of Things (IoT).
• Home Fuel Cells.
• Multi-functional electronic devices
• Semiconductor Equipment such as Automatic Test Handler, Pick and Place Machines, Test
Head Manipulator and their accessories like Test Sockets, Probe cards, ATE Load Boards,
Conversion Kits, Docking Mechanisms
• Electronics security devices- including CCTV/Surveillance equipment, Access control, intruder
alarms, etc.
• Electronic product design including PCB design
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MSIP: Manufacturing Vertical…2
INTERMEDIATES
• Electroplating, small precision plastic and metal parts, tools, molds & dies
• Liquid Crystal Module (LCM)
• Organic Light Emitting Diodes (OLED)
• Chip Modules for Smart Cards
• Analog/Mixed Signal Semiconductors Chips
RAW MATERIALS EXCLUSIVELY FOR ELECTRONIC PRODUCTS
CAPITAL EQUIPMENT FOR ELECTRONIC PRODUCTS
REMANUFACTURING OF ELECTRONIC PRODUCTS
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Semiconductor Policy
• 25% subsidy on capital expenditure and growth
capital expenditure.
• Reimbursement of CVD and excise duty.
• Exemption from basic customs duties and 200 per
cent deduction on R&D activities.
• Other incentives such as reimbursement of training
costs, deduction for income tax and various forms of
viability gap funding.
• 2 units approved, in Gujarat and Noida, investment of
over 60,000cr by two consortiums
 Jaiprakash Associates Ltd, IBM and Israel-based
TowerJazz, Rs.29,000 crore unit in Greater Noida
 Hindustan Semiconductor Manufacturing Corp,
French-Italian STMicroelectronics NV and Malaysia-
based Silterra, Rs.34,000-crore facility in Prantij,
near Gandhinagar.
• Analog Semiconductor Fabrication (FAB) Investment
Policy 2015, Madhya Pradesh
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Semiconductor Design Market
State of Play:
• Almost all semiconductor MNCs have significant amount of design
activity from India.
• Multiple design houses are also either doing full chips or
supporting the design activity of the MNCs.
• Nearly 2,000 chips are being designed every year in India and more
than 20,000 engineers are working on various aspects of chip
design.
• More than 120 companies in India are focused on semiconductor
design for global products. This design industry has witnessed a
robust growth of 17.3 per cent since 2009 and today boasts of a 5-
10% share of the global pie.
India, today consumes over $10 billion of semiconductor products every year.
By 2020, semiconductor design
market in India is expected to increase
by a CAGR of 29.4% to
US$ 52.6 billion.
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EMC
• Electronics Manufacturing Clusters (EMC)
scheme aims to make India a global player in
the field of Electronics Manufacturing by
providing world-class infrastructure for
attracting investments in the Electronics
Systems Design and Manufacturing (ESDM)
Sector
• Scheme provides grant assistance for setting
up of both Greenfield and Brownfield EMCs
across the country.
• Financial assistance under the scheme is in
the form of grant-in-aid only.
• The Scheme was notified vide notification no.
252 dated 22nd October, 2012 and is open for
5 years for receiving applications from the
date of notification.
Setting up Electronic Manufacturing Clusters:
• Greenfield EMCs, 50% of the project cost will be
provided, subject to a ceiling of Rs. 50 crore for every
100 acres of land.
− Greenfield projects approved:
 In-principle approval: 2 each in West Bengal,
Uttar Pradesh, Telangana, Tamil Nadu, Gujarat
and Andhra Pradesh and 1 each in Bihar,
Chhattisgarh, Kerala, Odisha and Rajasthan.
 Final approval: 2 in Madhya Pradesh, 1 in
Rajasthan and 1 in Jharkhand
• Brownfield EMCs, 75% of the project cost will be
provided, subject to a ceiling of Rs. 50 crore.
− Brownfield projects approved:
 In-principle approval for 2 in Karnataka and 2 in
Maharashtra
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Information Technology Investment Regions (ITIRs)
• Information Technology Investment Regions
(ITIRs) are self contained integrated
townships to accelerate growth of IT / ITeS /
Electronic & Hardware Manufacturing
industry (EHM).
• As per the policy, minimum area of 40 sqkm
should be delineated for ITIR.
• Out of the total delineated area, 40% should
be earmarked for processing zone and
remaining area for non-processing zone.
• Processing zone would comprise of IT / ITeS
and EHM Units, along with associated
logistics and other services and required
infrastructure.
• Non-processing area, to include residential,
commercial and other social and institutional
infrastructure.
• As on today, Department of Electronics & Information
Technology, Govt. of India had notified setting up of
ITIRs near Bengaluru and Hyderabad.
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Preferential Market Access (PMA)
• Preference for domestically manufactured electronic goods in Govt. procurement
• Procurement will not be less than 30 % of the total procurement.
• WTO compatible & no discrimination between foreign & Indian companies in procurement.
Notified List (2015)
1. Notebooks &
Netbooks
2. Tablets
3. Desktops
4. Servers
5. Printers
6. Keyboards
7. Monitors
8. Storage USBs,
Memory Cards
9. CCTVs, Surveillance
Cameras
10. ATMs
11. Photocopiers
12. Scanners
13. Faxes
14. Smart Cards
15. Mobile Handsets
16. Handheld Terminals
17. PC Projector
18. POC based devices
Directorate General of
Supplies and Disposals
(DGS&D) and National
Informatics Center Services
Inc. (NICSI) have been
designated as the nodal
agency for providing
preference to domestically
manufactured electronic
goods in all government
procurements.
Guidelines for PMA, as well notified items under Telecom (number 24) can be accessed from:
http://deity.gov.in/sites/upload_files/dit/files/R_G_U_16_11_2015.pdf
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Electronics Development Fund
• EDF will help create ecosystem for electronics
R&D.
• Set up as a “Fund of Funds” to participate in
“Daughter Funds” which in turn will provide risk
capital to companies developing new technologies
in the area of electronics, nano-electronics and
Information Technology (IT).
• The EDF would take minority participation in Seed
Funds, Angel Funds and Venture Funds dedicated
in this area.
• Recently operationalized – 2015 as a part of Digital
India Programme with the objective of net zero
imports.
• The policy will be available for approval of new
Daughter funds up to 31.3.2017.
• They will also support acquisition of foreign
companies and technologies for products
imported in India in large volume
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PhD Scheme for Electronics & IT
• Objective:
Enhance number of PhDs in Electronics System
Design and Manufacturing (ESDM) and IT/IT
Enabled Services (IT/ITES) sectors in the country.
• Launch:
2014 effective for 9 years.
• Expenditure:
Rs. 466 crores
Salient features of PhD Scheme:
• Thrust to R&D, create an innovative ecosystem
and enhance India’s competitiveness in these
knowledge intensive sectors.
• Support 3000 PhD Candidates – 1500 each in
ESDM and IT/ITES sectors respectively - both
Full-Time (500) and Part-Time (1000) .
• Support 200 Young Faculty Research Fellowships
in the areas of ESDM and IT/ITES - objective to
retain and attract bright young faculty members
in these sectors.
• The scheme is also expected to encourage
working professionals and non-PhD faculty
members to pursue PhD.
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Export Incentives
• Peak rate of Basic Customs Duty (BCD) is 10%.
• BCD on 217 tariff lines covered under the Information
Technology Agreement (ITA) of WTO is 0%.
• BCD on specified raw materials / inputs used for
manufacture of electronic components and optical fibres
and cables is 0%.
• BCD on specified capital goods used for manufacture of
electronic goods is 0%.
• Goods required in the manufacture of ITA items
exempted from BCD.
• Special Additional duty of Customs (SAD) has been
reduced from 4% to Zero for all goods except populated
PCBs, falling under any Chapter of the Customs Tariff, for
use in manufacture of ITA bound goods (vide
Notification No. 11/2015-Customs dated 01.03.2015).
• Focus Product Scheme (FPS) – Duty Credit
2% of FOB.
• Special Focus Product Scheme (SFPS) –
Duty Credit 5% of FOB.
• Focus Market Scheme (FMS): To offset high
freight cost and other externalities to
select markets – Duty Credit of 3% of FOB.
• Special Focus Market Scheme (SFMS):
Exports to 41 countries would be
incentivized - Additional 1% duty credit
over and above the duty credit granted
under FMS.
• Apart from the above, each State in India
offers additional incentives. Some States
have separate policies for electronics.
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Export Incentives
• Parts, components and accessories for the
manufacture of mobile handsets; sub-parts for
the manufacture of such parts and components
are exempted from BCD and Excise Duty.
• Differential Excise Duty dispensation is available
to Mobile Handsets i.e. Countervailing Duty
(CVD) @12.5% and Excise Duty @1% without
CENVAT credit or 12.5% with CENVAT credit.
Mobile Handsets
• Excise Duty / CVD and SAD is exempted on
specified raw materials for use in the
manufacture of Pacemakers.
• BCD on certain specified inputs for use in the
manufacture of Flexible Medical Video
Endoscopes has been reduced from 5% to 2.5%.
• BCD reduced to 2.5% with 6% CVD and Nil SAD
on parts of Blood Pressure Monitors and Blood
glucose monitoring systems (Glucometers) on
actual user basis.
Medical Electronic Products
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Export Incentives
• Basic Customs Duty (BCD) has
been reduced to 0% on the
following:
 LCD, LED or OLED TV Panels;
Colour Picture Tube.
 Specified parts of LCD and
LED TV Panels (including
open cell, plate diffuser, film
diffuser, back light unit
module).
Manufacturing of TVs
• BCD on imports of STBs
increased to 10%.
• The domestic STB
manufacturers had to pay CST
equivalent to VAT rate
(typically 12.5%). This has been
resolved by extending the
facility of Form ‘C’ to STBs vide
O.M of Department of
Revenue dated 13th August,
2014.
Set Top Boxes (STB)
• Parts, components and
accessories for use in the
manufacture of tablet
computers and their sub-parts
for use in manufacture of
parts, components and
accessories are exempted from
BCD, CVD and Special
Additional Duty of Customs
(SAD).
• Differential Excise Duty
dispensation is available to
Tablet Computers i.e. CVD
@12.5% and Excise Duty @2%
without CENVAT credit or
12.5% with CENVAT credit.
Tablet Computers
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What is Digital India?
• To make India ready for a knowledge-based future.
• Focus of the Rs 1.13 lakh crore (appx. US$ 17 billion) initiative is on using
technology to create a participative, transparent and responsive government.
Digital
Infrastructure
as a Core Utility
for Every Citizen
Governance
and Services on
Demand
Digital
Empowerment
of Citizens
• Providing high-speed internet, mobile phone and bank account enabling
participation in digital & financial space; shareable private space on a public
cloud, and creating a safe and secure cyber space.
• Seamless integration across departments/jurisdictions
• Ensuring availability of services in real time from online and mobile platforms for
ease of doing business, leveraging geographical information systems (GIS) etc.
• Take digital literacy to the next level
• Providing digital resources in Indian languages, citizens not required to submit
physical documents, etc.
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9 Pillars of Digital India
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9 Pillars of Digital India
• Broadband for All – Rural: 2,50,000
village Panchayats to be covered under
the National Optical Fibre Network
(NOFN) by Dec 2016.
• Broadband for All – Urban: Virtual
Network Operators would be leveraged
for service delivery and communication
infrastructure in new urban
developments and buildings would be
mandated.
• National Information Infrastructure
(NII): NII would integrate the network
and cloud infrastructure in the country
to provide high speed connectivity and
cloud platform to various government
departments up to the panchayat level.
1. Broadband Highways
• Plan seeks to provide mobile coverage
in a phased manner to the remaining
55,619 villages in the country. The total
project cost will be around Rs.16,000 Cr
(appx. US$ 2.3 billion) during 2014-18.
2. Universal Access to Phones
• Common Service Centres (CSCs): CSCs
would be strengthened and increased
from the current 135,000 to 250,000.
CSCs – one in each Gram Panchayat,
would be made viable & multi-
functional end-points for delivery of
government services.
• Post Offices as Multi-service centres:
150,000 Post Offices to be converted
into multi service centres.
3. Public Internet Access Programme
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9 Pillars of Digital India
• Online applications
and tracking, Form
simplification and
field reduction.
• Online repositories
- Use of online
repositories (e.g.
for certificates,
educational
degrees, identity
documents, etc.) so
that citizens are not
required to submit
these documents in
physical form.
4. E-governance:
• Plan seeks to provide mobile coverage in a phased manner to the remaining 55,619 villages in the country. The
total project cost will be around Rs.16,000 Cr (appx. US$ 2.3 billion) during 2014-18.
• The biggest programme within Digital India and focusses on a mobile-first approach.
• Integration of services and platforms e.g. Aadhaar platform of Unique Identity Authority of India (UIDAI),
payment gateway, Mobile Seva platform etc.
• There are 44 Mission Mode Projects under e-Kranti, which are at various stages of implementation.
• E-education: Free wi-fi in all schools and providing massive online open courses (MOOCs)
• E-healthcare: online medical consultation, online medical records, online medicine supply, pan-India exchange
for patient information, etc.
• Technology for farmers: real time price information, online ordering of inputs and online cash, loan, and relief
payment with mobile banking.
• Technology for security: Mobile based emergency services and disaster related services on real time basis.
• Technology for cyber-security: National Cyber Security Co-ordination Centre would be set up to ensure safe and
secure cyber-space within the country.
• Technology for financial inclusion: Through use of mobile banking, Micro-ATM program and CSCs/ Post Offices.
• Technology for Justice: e-Courts, e-Police, e-Prosecution etc.
5. E-Kranti:
E-Kranti: Transforming E-governance for Transforming Governance
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9 Pillars of Digital India
• Open Data platform: http://data.gov.in
facilitates proactive release of datasets
in open format by the
ministries/departments for use, reuse
and redistribution. Provides open and
easy access to information for citizens.
• Engagement through social media: Pro-
actively engage through social media
and web based platforms to inform and
interact with citizens.
• MyGov.in: This website
crowdsources ideas from the public for
design of programmes such as better
traffic management, using big data for
making cities smarter etc.
• Online messaging: Online messaging to
citizens on special occasions/programs
would be facilitated through emails and
SMS.
6. Information for all:
• This pillar focuses on promoting
electronics manufacturing in the
country with the target of NET ZERO
Imports by 2020 as a striking
demonstration of intent.
7. Electronics Manufacture:
• This pillar focuses on providing training to the youth in the skills required for availing
employment opportunities in the IT / ITES sector. Components of this pillar include:
• Train 10 million students from smaller towns & villages for IT sector jobs over 5 years.
• Setting up BPOs in every north-eastern state to facilitate ICT enabled growth in these states.
• Training 300,000 service delivery agents as part of skill development to run viable
businesses delivering IT services.
• Training 500,000 Rural Workforce on Telecom and Telecom related services
8. IT for Jobs:
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9 Pillars of Digital India
• IT platform for sending messages.
• E-greetings portal on Mygov.in
• Biometric attendance.
• Wi-fi in all universities.
• Secure email for government officials.
• Standardized government email design.
• Public Wi-fi spots in all cities with 1 million population and at tourist
hubs.
• School books to be e-books.
• SMS-based weather information and disaster alerts.
• National portal for lost and found children -
http://khoyapaya.gov.in/mpp/home
9. Early Harvest Programmes:
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Digital India investment opportunities
• Building broadband infrastructure
• Creating identity solutions, payment
systems, web or mobile based delivery
structures etc.
• Cybersecurity
• Healthcare - telemedicine and remote
health
• Smart Cities – 100 smart cities
program already announced.
• Make in India - Electronics
Manufacturing - For India to transition
to a digital future, it is imperative that
a greater proportion of its
consumption is serviced locally.
Digital India:
Investments announced
• Reliance Industries Ltd:
US$ 39.3 billion
• Bharti Airtel:
US$ 15 billion
• Aditya Birla Group:
US$ 7 billion
• Vedanta (Sterlite Tech):
US$ 6 billion
• Vodafone:
US$ 2 billion
• ADA Ltd:
US$ 1.4 billion
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INVESTMENT & TECHNOLOGY PROMOTION DIVISION
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Electronics Sector.pptx

  • 1. Electronics Sector in India INVESTMENT & TECHNOLOGY PROMOTION DIVISION MINISTRY OF EXTERNAL AFFAIRS NEW DELHI
  • 2. 2 Electronics • Indian Electronics System Design and Manufacturing (ESDM) industry is one of the fastest growing sectors in the country. • Changing global landscapes in electronics design and manufacturing capabilities, and cost structures have turned the attention of global companies towards India. • State of Play: − 65% of the electronics is currently imported; − 25-30% of the systems simply assembled; − less than 10% of the electronic systems are completely designed and manufactured in India. − Almost 100% of semiconductors are imported. • Domestic production can cater to a demand of only $100 Bn by 2020… demand-supply gap of $300 Bn. Electronics imports, are currently the 3rd highest, next to crude and gold. Top 10 electronic products contributing about 70% by total revenue include: • Mobile Phones • Flat Panel TVs • Notebooks • Desktops • Digital Camera • Inverters & UPS • Memory Cards & USB Drivers • 4W EMS • LCD Monitors • Servers $35 bn $34 bn $34 bn $29 bn $12 bn $10 bn $10 bn LED Telecom Equipment Laptops/Portables Consumer Electronics Medical Electronics Set Top Boxes Automotive Electronics Segment: 2020 Mkt. Size
  • 3. 3 State of Play of ESDM Industry • The different segments within the ESDM industry are at varying stages of development. • Electronics applications markets such as telecom electronics, automotive electronics, consumer electronics and industrial electronics, are at different stages of ecosystem development. • Focus currently on providing impetus to take advantage of the dormant capabilities across the various electronics markets and developing the missing links to make local ESDM sector globally competitive. • The ESDM industry in India comprises the following four key components: 1. Electronic Products 2. Electronic Components 3. Semiconductor Design 4. Electronics Manufacturing Services (EMS) • The first two represent products while the latter two highlight the services opportunities catering to the domestic and export markets. The following 20 product markets accounts for 80% of the overall electronics revenues • Mobile Phones • Digital Camera • LCD Monitors • Set Top Box • CFL • Notebooks • Memory cards and USB drivers • Base Stations • Routes / Switches • Digital Instrument Clusters • FPD TV • Inverters and UPS • Servers • Printers and FPDs • Energy Meters • Desktops • 4W EMS • Power Supplies • Car Radio • Smart Cards 120% 54% 38% 19% 10% Products with tremendous growth potential: Telecommunications (PON, GPON ONT) IT/OA (Tablets) Industrial Electronics (LED lighting) Payment Terminals Automotive Electronics (2W ignition)
  • 4. 4 India – Strengths and Opportunities • Huge Consumption Market • Strong Design and R&D Capability in Select Products - Auto electronics, industrial etc. • Government Schemes a Good Demand Generator - tablets for education sector, Digital India, broadband push etc. • Adequately Developed EMS Industry - to be a significant contributor to ecosystem development • Enormous Resident Talent in Semiconductor Design and Embedded Software STRENGTHS • Significant Local Demand as a Influencer for Investment Attraction • Rising Manufacturing Costs in China Leading to India as Alternate Destination • Government Policies - MSIPS, EMC, local FABs etc., Favour Attracting Manufacturing Investments • Export Potential - huge consumption market in ME; emerging growth markets of North Africa and Latin America • Existing R&D Capabilities can be Encouraged to Develop ‘Made in India’ Products and Generate Local IP OPPORTUNITIES
  • 5. 5 The most common components that go into the Bill of Materials (BoM) for manufacturing electronic products include the following: Manufacturing Opportunity • Power devices and semiconductors • Processor • Memory • Printed circuit board (PCB) • LCD display • Transformer • Absence of a local fab implies complete reliance on imports for these components. • India’s FAB initiative is expected to usher at least 2 semiconductor fabs facilities in the foreseeable feature. • Given the numerous applications that require processing capability, creating an India-specific processor design, and fabricating them in local chips shall ensure a significant contribution to the local value addition. 1. Semiconductors India Opportunity • Global hub for VLSI and board design • Strong third party design service providers • Huge domestic electronics consumption market • Presence of R&D and design centres of the top 23 global semiconductor majors India Opportunity
  • 6. 6 Manufacturing Opportunity (contd..) • India has a good number of PCB manufacturers in the country. • However the local capability is restricted to producing single, dual and multi layered PCBs of up to 8-12 layers. • The PCBs needed in telecom, consumer and automotive applications, which require complex multi-layered PCBs are imported. • Need for design and manufacturing of multi-layered PCBs of up to 64+ layers. 2. Printed Circuit Board (PCB) India Opportunity • PCB manufacturing capability exists locally • Strengths in single, dual layers • Capability to do multiple layers too for less complex applications • Export market exists India Opportunity • India possesses local design and manufacturing capabilities for some of the end use products. However, the cost of production of panels and its technology-intensive nature have kept India void of an LCD display assembling/manufacturing unit hitherto. • High volume demand anticipated in the various products that consume displays, makes it pertinent to grow the ecosystem for LCD displays locally. 3. LCD Displays India Opportunity • Huge consumption demand • End use product manufacturing through OEMS and EMS exists • Favourable incentives for panel manufacturing available under MSIPS India Opportunity
  • 7. 7 Manufacturing Opportunity (contd..) • Consumer and industrial electronics segments drive the demand for transformers. • Market is dominated by small scale indigenous manufacturers. • Reliance on import for raw materials, specifically copper. 4. Transformers: India Opportunity • Preferential excise duty for transformer manufacturing: tax rebates. • Subsidies on logistic costs of copper import to reduce product landed cost • Special interest loans for working capital for SME India Opportunity Products seeing the fastest growth 1. Set Top Box (STB): Demand Drivers: Cable TV Networks (CTN) Amendment Bill 2011 mandates digitization of TV broadcasts pan India by 2014 & Introduction of HD channels and smart TVs. Technology: Hybrid STBs integrating video content from multiple signal sources - TV, premium VoD, and Internet-based video services, and providing value-added capabilities like time shifting, and distributing content to a variety of viewing devices including multi- room TV networks, personal computers, portable media players, and other mobile devices 2. Medical Electronics: Demand drivers: Burgeoning middle-class, rising incomes, urbanization, rise in lifestyle diseases, and awareness about benefits of healthcare delivery system. Moreover, India’s healthcare expenditure is nearly 4% of the GDP. Technology for India: Development of miniaturized, multifunctional, ultra-low power, portable, and reduced cost devices for patient monitoring, imaging, implantable, therapeutic, and surgical requirements. Wearable devices to aid physicians offer extended care outside the clinical environment.
  • 8. 8 Products seeing the fastest growth (Contd..) 3. Auto electronics: Potential: • Cost of Auto Electronics content as % of total automobile cost in India is expected to double from 23% to 45% over the period 2010-2030 as per McKinsey ACMA Report 2015 • High-end car models feature more auto electronics with larger and more complex electrical systems. • Electronic accessories in demand: Satellite navigation systems, remote security systems, ADAS, traffic control systems etc. • India has close to 20 million passenger vehicles on the road. More and more consumers are looking for electronic features in their cars (parking cameras, tyre pressure warning systems, parking sensors etc. Investments in Auto Electronics • Companies exploring opportunities in India: Motherson Sumi Systems, Bosch India, Magnetti Marelli, Calsonic Kansei and Continental Automotive. • Established foreign players: Johnson Controls and Denso have established presence in India through JVs. • Auto Electronics industry…currently at a nascent stage • Lagging behind its foreign counterparts in terms of capacity and R&D capability. • Product conceptualization and designing of electronic components is typically undertaken by OEMs…Indian vendors focusing on assembling the imported parts. Target • Department of Electronics and Information Technology (GOI) has set an aggressive target of reaching US$10 billion market size in Auto Electronics by 2020 which is 3x the current market size.
  • 9. 9 Policy Initiatives Promoting exports Favorable eco-system Focus on Human resource development Developing and mandating electronics standards Focus on strategic electronics Focus on innovation and R&D Strategies • The Indian Government has instituted a number of forward-looking policies to foster the growth of the Indian electronics ecosystem. • Policies aimed at holistic development of the ESDM industry by offering specific incentives for the development of each element in the value chain. These forward looking policy measures include:  National Policy on Electronics  MSIP Scheme  Fab policy  EMCs and ITIRs  Preferential Market Access  Electronic Development Fund  PhD Scheme  Export Incentives
  • 10. 10 National Policy on Electronics • Achieve a turnover of $400Bn by 2020 by investing $100Bn and providing employment to around 28Mn. • Build a supply chain of raw materials, parts & electronic components and raise local production from present 20~25% to over 60%. • Develop & Mandate standards for electronic products. • Increase fund flow for R&D, seed & venture capital for start-ups in ESDM & nano-electronics. • Setting up of over 200 Electronic Manufacturing Clusters (EMCs). • Enhance skill availability: 2500 PhDs annually by 2020. Electronic Hardware Technology Park • For encouraging exports of electronic hardware items  Duty free import of inputs as required by it for manufacture, services, production and processing.  100% FDI, excise duty free on indigenous goods.  Sales are deemed exports and will get benefits under the Foreign Trade Policy. • Export profits 100% tax exempt • DTA sales permissible up to 50% of FOB value of exports, subject to fulfilment of positive NFE(Net Foreign Exchange) • This scheme is a part of India’s Foreign Trade Policy 2015-20
  • 11. 11 MSIP Scheme Modified Special Incentive Package Scheme (MSIPS) - 2015: • Promotes investments in the Electronic System Design & Manufacturing (ESDM) sector • To avail scheme, application to be sent to Dept. of Electronics & IT. Financial incentives include: • Subsidy of 25% on Capex if the ESDM unit is in non-SEZ. • Subsidy of 20% on capex if within SEZ. • Capex subsidy available for investments made within 10 years from date of approval. • 200% deduction on R&D for setting up electronic chip manufacturing unit • Reimbursement of CVD/excise on capital equipment for non-SEZ units. • Reimbursement of central taxes and duties (like custom duties, excise duties and service tax) for 10 years in select high- tech units like Fabs, Semiconductor Logic and Memory chips, LCD fabrication. • Refund of capex for new units or for expansion of more than 25% of existing capacity in a DeitY Notified Greenfield or Brownfield Electronics manufacturing cluster for production of products across ESDM value chain.
  • 12. 12 MSIP: Manufacturing List - 2015 ELECTRONIC PRODUCTS • Telecom products: Optical fibers and optical fiber cables, headends. • IT Hardware products : Automatic Teller Machines(ATMS). • Consumer Electronics: Audio Video Products, Electronic Watches and Clocks, electronic toys, wearable electronics, electronic personal care products. • Automotive Electronics: Brushed DC Motors, etc. • Bio-metric and identity devices/RFID: Smart Card manufacturing and personalization • Consumer Appliances like Refrigerators, ACs, Fully Automatic Washing Machines, Microwaves Oven, etc. • Machine to Machine (M2M) and Internet of Things (IoT). • Home Fuel Cells. • Multi-functional electronic devices • Semiconductor Equipment such as Automatic Test Handler, Pick and Place Machines, Test Head Manipulator and their accessories like Test Sockets, Probe cards, ATE Load Boards, Conversion Kits, Docking Mechanisms • Electronics security devices- including CCTV/Surveillance equipment, Access control, intruder alarms, etc. • Electronic product design including PCB design
  • 13. 13 MSIP: Manufacturing Vertical…2 INTERMEDIATES • Electroplating, small precision plastic and metal parts, tools, molds & dies • Liquid Crystal Module (LCM) • Organic Light Emitting Diodes (OLED) • Chip Modules for Smart Cards • Analog/Mixed Signal Semiconductors Chips RAW MATERIALS EXCLUSIVELY FOR ELECTRONIC PRODUCTS CAPITAL EQUIPMENT FOR ELECTRONIC PRODUCTS REMANUFACTURING OF ELECTRONIC PRODUCTS
  • 14. 14 Semiconductor Policy • 25% subsidy on capital expenditure and growth capital expenditure. • Reimbursement of CVD and excise duty. • Exemption from basic customs duties and 200 per cent deduction on R&D activities. • Other incentives such as reimbursement of training costs, deduction for income tax and various forms of viability gap funding. • 2 units approved, in Gujarat and Noida, investment of over 60,000cr by two consortiums  Jaiprakash Associates Ltd, IBM and Israel-based TowerJazz, Rs.29,000 crore unit in Greater Noida  Hindustan Semiconductor Manufacturing Corp, French-Italian STMicroelectronics NV and Malaysia- based Silterra, Rs.34,000-crore facility in Prantij, near Gandhinagar. • Analog Semiconductor Fabrication (FAB) Investment Policy 2015, Madhya Pradesh
  • 15. 15 Semiconductor Design Market State of Play: • Almost all semiconductor MNCs have significant amount of design activity from India. • Multiple design houses are also either doing full chips or supporting the design activity of the MNCs. • Nearly 2,000 chips are being designed every year in India and more than 20,000 engineers are working on various aspects of chip design. • More than 120 companies in India are focused on semiconductor design for global products. This design industry has witnessed a robust growth of 17.3 per cent since 2009 and today boasts of a 5- 10% share of the global pie. India, today consumes over $10 billion of semiconductor products every year. By 2020, semiconductor design market in India is expected to increase by a CAGR of 29.4% to US$ 52.6 billion.
  • 16. 16 EMC • Electronics Manufacturing Clusters (EMC) scheme aims to make India a global player in the field of Electronics Manufacturing by providing world-class infrastructure for attracting investments in the Electronics Systems Design and Manufacturing (ESDM) Sector • Scheme provides grant assistance for setting up of both Greenfield and Brownfield EMCs across the country. • Financial assistance under the scheme is in the form of grant-in-aid only. • The Scheme was notified vide notification no. 252 dated 22nd October, 2012 and is open for 5 years for receiving applications from the date of notification. Setting up Electronic Manufacturing Clusters: • Greenfield EMCs, 50% of the project cost will be provided, subject to a ceiling of Rs. 50 crore for every 100 acres of land. − Greenfield projects approved:  In-principle approval: 2 each in West Bengal, Uttar Pradesh, Telangana, Tamil Nadu, Gujarat and Andhra Pradesh and 1 each in Bihar, Chhattisgarh, Kerala, Odisha and Rajasthan.  Final approval: 2 in Madhya Pradesh, 1 in Rajasthan and 1 in Jharkhand • Brownfield EMCs, 75% of the project cost will be provided, subject to a ceiling of Rs. 50 crore. − Brownfield projects approved:  In-principle approval for 2 in Karnataka and 2 in Maharashtra
  • 17. 17 Information Technology Investment Regions (ITIRs) • Information Technology Investment Regions (ITIRs) are self contained integrated townships to accelerate growth of IT / ITeS / Electronic & Hardware Manufacturing industry (EHM). • As per the policy, minimum area of 40 sqkm should be delineated for ITIR. • Out of the total delineated area, 40% should be earmarked for processing zone and remaining area for non-processing zone. • Processing zone would comprise of IT / ITeS and EHM Units, along with associated logistics and other services and required infrastructure. • Non-processing area, to include residential, commercial and other social and institutional infrastructure. • As on today, Department of Electronics & Information Technology, Govt. of India had notified setting up of ITIRs near Bengaluru and Hyderabad.
  • 18. 18 Preferential Market Access (PMA) • Preference for domestically manufactured electronic goods in Govt. procurement • Procurement will not be less than 30 % of the total procurement. • WTO compatible & no discrimination between foreign & Indian companies in procurement. Notified List (2015) 1. Notebooks & Netbooks 2. Tablets 3. Desktops 4. Servers 5. Printers 6. Keyboards 7. Monitors 8. Storage USBs, Memory Cards 9. CCTVs, Surveillance Cameras 10. ATMs 11. Photocopiers 12. Scanners 13. Faxes 14. Smart Cards 15. Mobile Handsets 16. Handheld Terminals 17. PC Projector 18. POC based devices Directorate General of Supplies and Disposals (DGS&D) and National Informatics Center Services Inc. (NICSI) have been designated as the nodal agency for providing preference to domestically manufactured electronic goods in all government procurements. Guidelines for PMA, as well notified items under Telecom (number 24) can be accessed from: http://deity.gov.in/sites/upload_files/dit/files/R_G_U_16_11_2015.pdf
  • 19. 19 Electronics Development Fund • EDF will help create ecosystem for electronics R&D. • Set up as a “Fund of Funds” to participate in “Daughter Funds” which in turn will provide risk capital to companies developing new technologies in the area of electronics, nano-electronics and Information Technology (IT). • The EDF would take minority participation in Seed Funds, Angel Funds and Venture Funds dedicated in this area. • Recently operationalized – 2015 as a part of Digital India Programme with the objective of net zero imports. • The policy will be available for approval of new Daughter funds up to 31.3.2017. • They will also support acquisition of foreign companies and technologies for products imported in India in large volume
  • 20. 20 PhD Scheme for Electronics & IT • Objective: Enhance number of PhDs in Electronics System Design and Manufacturing (ESDM) and IT/IT Enabled Services (IT/ITES) sectors in the country. • Launch: 2014 effective for 9 years. • Expenditure: Rs. 466 crores Salient features of PhD Scheme: • Thrust to R&D, create an innovative ecosystem and enhance India’s competitiveness in these knowledge intensive sectors. • Support 3000 PhD Candidates – 1500 each in ESDM and IT/ITES sectors respectively - both Full-Time (500) and Part-Time (1000) . • Support 200 Young Faculty Research Fellowships in the areas of ESDM and IT/ITES - objective to retain and attract bright young faculty members in these sectors. • The scheme is also expected to encourage working professionals and non-PhD faculty members to pursue PhD.
  • 21. 21 Export Incentives • Peak rate of Basic Customs Duty (BCD) is 10%. • BCD on 217 tariff lines covered under the Information Technology Agreement (ITA) of WTO is 0%. • BCD on specified raw materials / inputs used for manufacture of electronic components and optical fibres and cables is 0%. • BCD on specified capital goods used for manufacture of electronic goods is 0%. • Goods required in the manufacture of ITA items exempted from BCD. • Special Additional duty of Customs (SAD) has been reduced from 4% to Zero for all goods except populated PCBs, falling under any Chapter of the Customs Tariff, for use in manufacture of ITA bound goods (vide Notification No. 11/2015-Customs dated 01.03.2015). • Focus Product Scheme (FPS) – Duty Credit 2% of FOB. • Special Focus Product Scheme (SFPS) – Duty Credit 5% of FOB. • Focus Market Scheme (FMS): To offset high freight cost and other externalities to select markets – Duty Credit of 3% of FOB. • Special Focus Market Scheme (SFMS): Exports to 41 countries would be incentivized - Additional 1% duty credit over and above the duty credit granted under FMS. • Apart from the above, each State in India offers additional incentives. Some States have separate policies for electronics.
  • 22. 22 Export Incentives • Parts, components and accessories for the manufacture of mobile handsets; sub-parts for the manufacture of such parts and components are exempted from BCD and Excise Duty. • Differential Excise Duty dispensation is available to Mobile Handsets i.e. Countervailing Duty (CVD) @12.5% and Excise Duty @1% without CENVAT credit or 12.5% with CENVAT credit. Mobile Handsets • Excise Duty / CVD and SAD is exempted on specified raw materials for use in the manufacture of Pacemakers. • BCD on certain specified inputs for use in the manufacture of Flexible Medical Video Endoscopes has been reduced from 5% to 2.5%. • BCD reduced to 2.5% with 6% CVD and Nil SAD on parts of Blood Pressure Monitors and Blood glucose monitoring systems (Glucometers) on actual user basis. Medical Electronic Products
  • 23. 23 Export Incentives • Basic Customs Duty (BCD) has been reduced to 0% on the following:  LCD, LED or OLED TV Panels; Colour Picture Tube.  Specified parts of LCD and LED TV Panels (including open cell, plate diffuser, film diffuser, back light unit module). Manufacturing of TVs • BCD on imports of STBs increased to 10%. • The domestic STB manufacturers had to pay CST equivalent to VAT rate (typically 12.5%). This has been resolved by extending the facility of Form ‘C’ to STBs vide O.M of Department of Revenue dated 13th August, 2014. Set Top Boxes (STB) • Parts, components and accessories for use in the manufacture of tablet computers and their sub-parts for use in manufacture of parts, components and accessories are exempted from BCD, CVD and Special Additional Duty of Customs (SAD). • Differential Excise Duty dispensation is available to Tablet Computers i.e. CVD @12.5% and Excise Duty @2% without CENVAT credit or 12.5% with CENVAT credit. Tablet Computers
  • 24. 24 What is Digital India? • To make India ready for a knowledge-based future. • Focus of the Rs 1.13 lakh crore (appx. US$ 17 billion) initiative is on using technology to create a participative, transparent and responsive government. Digital Infrastructure as a Core Utility for Every Citizen Governance and Services on Demand Digital Empowerment of Citizens • Providing high-speed internet, mobile phone and bank account enabling participation in digital & financial space; shareable private space on a public cloud, and creating a safe and secure cyber space. • Seamless integration across departments/jurisdictions • Ensuring availability of services in real time from online and mobile platforms for ease of doing business, leveraging geographical information systems (GIS) etc. • Take digital literacy to the next level • Providing digital resources in Indian languages, citizens not required to submit physical documents, etc.
  • 25. 25 9 Pillars of Digital India
  • 26. 26 9 Pillars of Digital India • Broadband for All – Rural: 2,50,000 village Panchayats to be covered under the National Optical Fibre Network (NOFN) by Dec 2016. • Broadband for All – Urban: Virtual Network Operators would be leveraged for service delivery and communication infrastructure in new urban developments and buildings would be mandated. • National Information Infrastructure (NII): NII would integrate the network and cloud infrastructure in the country to provide high speed connectivity and cloud platform to various government departments up to the panchayat level. 1. Broadband Highways • Plan seeks to provide mobile coverage in a phased manner to the remaining 55,619 villages in the country. The total project cost will be around Rs.16,000 Cr (appx. US$ 2.3 billion) during 2014-18. 2. Universal Access to Phones • Common Service Centres (CSCs): CSCs would be strengthened and increased from the current 135,000 to 250,000. CSCs – one in each Gram Panchayat, would be made viable & multi- functional end-points for delivery of government services. • Post Offices as Multi-service centres: 150,000 Post Offices to be converted into multi service centres. 3. Public Internet Access Programme
  • 27. 27 9 Pillars of Digital India • Online applications and tracking, Form simplification and field reduction. • Online repositories - Use of online repositories (e.g. for certificates, educational degrees, identity documents, etc.) so that citizens are not required to submit these documents in physical form. 4. E-governance: • Plan seeks to provide mobile coverage in a phased manner to the remaining 55,619 villages in the country. The total project cost will be around Rs.16,000 Cr (appx. US$ 2.3 billion) during 2014-18. • The biggest programme within Digital India and focusses on a mobile-first approach. • Integration of services and platforms e.g. Aadhaar platform of Unique Identity Authority of India (UIDAI), payment gateway, Mobile Seva platform etc. • There are 44 Mission Mode Projects under e-Kranti, which are at various stages of implementation. • E-education: Free wi-fi in all schools and providing massive online open courses (MOOCs) • E-healthcare: online medical consultation, online medical records, online medicine supply, pan-India exchange for patient information, etc. • Technology for farmers: real time price information, online ordering of inputs and online cash, loan, and relief payment with mobile banking. • Technology for security: Mobile based emergency services and disaster related services on real time basis. • Technology for cyber-security: National Cyber Security Co-ordination Centre would be set up to ensure safe and secure cyber-space within the country. • Technology for financial inclusion: Through use of mobile banking, Micro-ATM program and CSCs/ Post Offices. • Technology for Justice: e-Courts, e-Police, e-Prosecution etc. 5. E-Kranti: E-Kranti: Transforming E-governance for Transforming Governance
  • 28. 28 9 Pillars of Digital India • Open Data platform: http://data.gov.in facilitates proactive release of datasets in open format by the ministries/departments for use, reuse and redistribution. Provides open and easy access to information for citizens. • Engagement through social media: Pro- actively engage through social media and web based platforms to inform and interact with citizens. • MyGov.in: This website crowdsources ideas from the public for design of programmes such as better traffic management, using big data for making cities smarter etc. • Online messaging: Online messaging to citizens on special occasions/programs would be facilitated through emails and SMS. 6. Information for all: • This pillar focuses on promoting electronics manufacturing in the country with the target of NET ZERO Imports by 2020 as a striking demonstration of intent. 7. Electronics Manufacture: • This pillar focuses on providing training to the youth in the skills required for availing employment opportunities in the IT / ITES sector. Components of this pillar include: • Train 10 million students from smaller towns & villages for IT sector jobs over 5 years. • Setting up BPOs in every north-eastern state to facilitate ICT enabled growth in these states. • Training 300,000 service delivery agents as part of skill development to run viable businesses delivering IT services. • Training 500,000 Rural Workforce on Telecom and Telecom related services 8. IT for Jobs:
  • 29. 29 9 Pillars of Digital India • IT platform for sending messages. • E-greetings portal on Mygov.in • Biometric attendance. • Wi-fi in all universities. • Secure email for government officials. • Standardized government email design. • Public Wi-fi spots in all cities with 1 million population and at tourist hubs. • School books to be e-books. • SMS-based weather information and disaster alerts. • National portal for lost and found children - http://khoyapaya.gov.in/mpp/home 9. Early Harvest Programmes:
  • 30. 30 Digital India investment opportunities • Building broadband infrastructure • Creating identity solutions, payment systems, web or mobile based delivery structures etc. • Cybersecurity • Healthcare - telemedicine and remote health • Smart Cities – 100 smart cities program already announced. • Make in India - Electronics Manufacturing - For India to transition to a digital future, it is imperative that a greater proportion of its consumption is serviced locally. Digital India: Investments announced • Reliance Industries Ltd: US$ 39.3 billion • Bharti Airtel: US$ 15 billion • Aditya Birla Group: US$ 7 billion • Vedanta (Sterlite Tech): US$ 6 billion • Vodafone: US$ 2 billion • ADA Ltd: US$ 1.4 billion
  • 31. 31 INVESTMENT & TECHNOLOGY PROMOTION DIVISION THANK YOU

Editor's Notes

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