Economy News-Daily Digest: 2 Key Updates
1. India’s draft electronics policy aims $400 billion manufacturing industry by 2025
The country’s draft electronics policy released by the IT ministry has set an ambitious target of creating a $400 billion electronics manufacturing industry by 2025, with the mobile phone devices segment accounting for three-fourths of the production. The draft National Policy on Electronics (NPE) aims to promote domestic manufacturing in the entire value-chain of ESDM (electronic system design and manufacturing) for spur economic development.
The proposed policy aims to double the target of mobile phone production from 500 million units in 2019 to 1 billion by 2025 to meet the objective. The $400 billion turnover shall include targeted production of 1 billion mobile handsets by 2025, valued at $190 billion (approximately Rs 13 lakh crore), including 600 million mobile handsets valued at $110 billion (approximately Rs 7 lakh crore) for export, the draft states.
The government plans to replace the modified special incentive scheme with schemes that it will find easier to implement such as interest subsidy and credit default guarantee etc. The modified special incentive package scheme was launched in 2012 which provided for capital subsidy of 25 per cent for the electronics industry located in non-SEZ area and 20 per cent for those in SEZ areas.
According to the draft, 20 greenfield and three brownfield electronic manufacturing cluster projects have been sanctioned with the project outlay of Rs 3,898 crore, including Rs 1,577 crore from the Government of India.
The policy proposes to push development of core competencies in all the sub-sectors of electronics including electronic components and semiconductors, defence electronics, automotive electronics, industrial electronics, strategic electronics etc.
2. IWAI To Launch Ro-Ro Service To Majuli Island In Assam
The Inland Waterways Authority of India (IWAI) is set to lalunch a Roll on-Roll off (Ro-Ro) service in Assam from Neamati to Manjuli island.
This service will reduce the road route distance of 423 km that trucks take from Neamati to Majuli Island via Tezpur Road Bridge to only 12.7 km with the use of river route.
Majuli is one of the biggest riverine islands in the world located on river Brahmaputra and faces serious challenges of connectivity. It has 144 villages with a population of over 1,50,000.
The IWAI has procured a new vessel MV Bhupen Hazarika at a cost of Rs 9.46 crore for the new service and is providing the needed terminal infrastructure too.