[Budget 2020] FM announces scheme to boost domestic manufacturing of electronic goods

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[Budget 2020] FM announces scheme to boost domestic manufacturing of electronic goods

[Budget 2020] FM announces scheme to boost domestic manufacturing of electronic goods

Industry News
Feb 01,20

Aim is to reduce reliance on Chinese imports of electronic components. FM also allocated Rs 8,000 cr for setting up National Mission on Quantum Computing to compete with US and China in this new field

[Budget 2020] FM announces scheme to boost domestic manufacturing of electronic goods

Mumbai

During her Budget speech, Finance Minister Nirmala Sitharaman proposed a scheme to encourage manufacturing of mobile phones, semi-conductor packaging and electronic equipment in the country. The scheme, the details of which will be released soon, can be used for manufacture of medical devices as well. China is the leading exporter of electronic goods and electronic components to India and India has been trying to reduce its reliance on Eastern neighbour for quite some time. The new scheme is another attempt in this direction.

According to FM says there is cost advantage for electronics manufacturing in India. But this needs more investment and the proposed scheme intends to do that.

The value of electronic equipment manufactured in the country has increased to Rs 4.58 lakh crore in 2018-19 from Rs 1.90 lakh crore in 2014-15.

Yesterday (January 31, 2020) addressing a joint sitting of both Houses of Parliament, President Ram Nath Kovind said while there were only two companies manufacturing mobiles in India in 2014, today India is the second largest mobile manufacturing hub in the world.

The government is promoting manufacturing of mobile phones, TVs and other electronic devices, and National Policy on Electronics has been formulated in this regard.

Over the last few years, the government has been bullish on making India a manufacturing base for the world and has set a target to promote domestic manufacturing in the entire value-chain of ESDM (electronic system design and manufacturing) to achieve a turnover of $ 400 billion (Rs 26 lakh crore) by 2025.

Nirmala Sitharaman today also announced the allocation of Rs 8,000 crore for setting up of the National Mission on Quantum Computing and its applications. The invest, which will be made over the next five years, comes at a time when the world is making bets on the emerging field that has potential impact in areas such as cyber security in the future.

By focusing on Quantum Technology, India will compete with the US and China.