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National Policy on Electronics

National Policy on Electronics

National Policy on Electronics

The National Policy on Electronics was proposed by the Ministry of Electronics and Information Technology to promote the growth of the Electronics System Design and Manufacturing (ESDM) industry across the country. In this article, we look at the National Policy on Electronics in detail.


The National Policy on Electronics aims at positioning India as a global hub for Electronics System Design and Manufacturing by creating an enabling environment for the industry to compete globally.

Features of National Policy on Electronics

The features of the National Policy on Electronics are listed follows:

  • Creating an ecosystem for the EDSM Sector by promoting manufacturing and export in the entire value-chain of ESDM
  • Providing support and incentive for manufacturing of core electronic components.
  • Providing special incentives for mega projects which are extremely high-tech and entail huge investments, such as semiconductor facilities display fabrication, etc.
  • Formulating suitable schemes and incentive mechanisms to encourage new units and expansion of existing units.
  • Promoting industry-led R&D and innovation in all sub-sectors of electronics such as 5G, Internet of Things (loT) or sensors, Machine Learning, Virtual Reality (VR), Artificial Intelligence (Al), Robotics, Drones, Photonics, Additive Manufacturing, Nano-based devices, etc.
  • Providing support and incentive for significantly enhancing the availability of skilled manpower.
  • Building special thrust on Chip Design Industry, Automotive Electronics Industry, Medical Electronic Devices Industry and Power Electronics for Mobility and Strategic Electronics Industry
  • Creating a Sovereign Patent Fund (SPF) to promote the development and acquisition of Intellectual Property (IP) in the ESDM sector.
  • Promoting trusted electronics value chain initiatives to improve national cybersecurity profile.


The Ministry of Electronics and Information Technology in coordination with the concerned Ministries provide support to the industry for expansion of electronics hardware manufacturing across the country. The MeitY will implement the decision, as indicated below:

Developing and Mandating Standards

  • Setting up of standards development framework for developing standards which is based upon global benchmarks for electronics, IT, e-Governance, etc.
  • Promoting the participation of domain experts from the Central Government, Startups and industry and global standards.
  • Setting up an institutional mechanism within MeitY for mandating for standards for electronics products.
  • Creating lab infrastructure capacity for testing of electronic goods, which includes cybersecurity.

Ease of doing Business

The National Investment Promotion and Facilitation Agency will facilitate investment in EDSm sector will facilitate the investment in coordination with the Government for the establishment of joint ventures along with speedy approvals by coordinating with the Government agencies.

Industry-led R&D and Innovation

The Industry-led R&D and Innovation will be encouraged in all sub-sectors of electronics:

  • Support for setting up incubation centres will be provided and strengthening the focus area of the existing centres to suit the future research requirement in the emerging technology areas of electronics.
  • Support for a startup in these emerging areas from supporting concept to the development of products which includes complete chain value.
  • Provide Sovereign Patent Fund (SPF) to promote development and acquisition of Intellectual property (IP) in the ESDM sector.
  • Provide support for the creation of Intellectual property (IP) and patents, which includes Research and Development (R & D).

Export Promotion

Provide incentives for promoting export of electronic goods by empowering exporters by facilitating global market access.

Cyber Security

  • Provide support for the development of capabilities for testing.
  • Provide support for the usage of IT products tested and evaluated for security-based upon standards like ISO 15408.
  • Promote startup for development of nano-based devices, photonics and cybersecurity products.
  • Promotion of Electronic Components Manufacturing Ecosystem
  • Provide incentives for manufacturing of core electronic components, lithium-ion cells for electronic or EV applications, fuel cells, optical fibre, solar cells, the raw material for electronic components etc. and ATMP of semiconductors.

Mega Projects

  • Provide incentives for mega projects which are high-tech and huge investments such as semiconductor facilities, display fabrication and LED chip fabrication units which includes infrastructure status to these units.
  • Promote investment in existing semiconductor facility, which includes support for setting up of Research and Development (R & D) units.

Developing core components in the sub-sector of Electronics

Provide support for developing core components in the following sub-sectors:

Promotion of the chip design industry

  • Provide support for the chip design industry through venture capital funding through a dedicated nodal agency. Also, India Fabless Semiconductor Venture Fund will be provided to directly invest in seed capital and venture equity in Indian Fabless semiconductor companies.
  • Incubation centres will be developed to provide necessary EDA tools, Intellectual Property (IP), prototypes and Assembly, Testing, Marking and Packaging (ATMP) required for startups.

Promotion of Medical Electronic Devices Industry

  • Promote Research and Development (R & D) through PPP model with the funding support from the industry with a specific focus on critical components.
  • Develop infrastructure for carrying out the evaluation, compliance by setting up new laboratories and upgrading the existing laboratories, which includes subsidies to MSMEs.
  • Provide support for the startup through manufacturing facilities and open labs programme, etc.
  • Provide support for enhancement of the manpower required for the industry, which includes the practice of skills in medical electronics.

Promotion of Electronics Industry and Power Electronics for Mobility

Promote exports through branding programme, marketing incentives, special incentive and export incentives.

Provide support for Research and Development (R & D), innovation to the upcoming generation, power electronics, intelligent transportation systems and automation.

Develop a Centre of Excellence (CoE) in engineered controls, electronics and software.

Promotion of Electronics Manufacturing Services Industry

Promote key activities under EMS for creation of the components under the manufacturing ecosystem in the country:

  • PCB assembly, which includes sub-assemblies.
  • Functional testing
  • Engineering and design of PCB
  • Product and component design

Promotion of Assembly, Testing, Marketing and Packaging Industry

Providing policy support for Assembly, Testing, Marketing and Packaging INdustry manufacturing semiconductor IC and memory chips.