The Government has been taking various initiatives on continuous basis for promotion of electronics manufacturing in the country to provide a validate environment for the industry to compete universally.
Electronics manufacturing is one of the important support of the Digital India Programme and the target to achieve net zero imports is a obvious demonstration of purpose.
The outlay for digital India programme improved by 23 per cent to Rs. 3,958 crore for 2020-21 as compared to the real allocation in the current fiscal.
Government has boosted provision for promotion of Electronics and IT hardware manufacturing through modified special incentive package scheme, electronics development fund and electronics manufacturing cluster to Rs. 980 crore from Rs. 690 crore in the current fiscal.
The growth has been mostly on the basis of incentives to be given for electronics manufacturing, research and development, development of manpower for the segment, cybersecurity and promotion of IT and IT-enabled services.
The finance ministry had allocated Rs. 3,750.76 crore in the previous budget, but the same was corrected downward to Rs. 3,212.52 crore, according to the budget document released on 1st Feb 2020.
The fund is expected to be spent on R&D activity in Electronics, nano and microelectronics including semiconductor integrated circuit layout design registry, medical electronics and health informatics, innovation promotion and start-ups, high-performance computing including National Supercomputing Mission, open source etc.
The Government has escalated allocation for National Knowledge Network to Rs. 400 crore from Rs. 274 crore in the current fiscal.
The fund allotment for cybersecurity projects and promotion of IT and ITeS industries have been increased to Rs. 170 crore each from Rs. 102 crore and Rs. 90 crore respectively.