INFORMATION TECHNOLOGY
- India has been the most preferred destination for the global sourcing of IT- ITES, accounting for more than 52% of the global sourcing market size in 2012 (excluding-engineering servicing market and R&D).
- The sector is estimated to aggregate revenues of USD 108 billion in FY 2013, with the IT software and services sector (excluding hardware) accounting for over USD 95 billion of revenues.
- As a proportion of national GDP, the sector revenues have grown from 1.2% in 1998 to nearly 8% in 2013.
- IT-ITES sector is the biggest employment generator and has spawned the mushrooming of several ancillary industries such as transportation, real estate and catering, security, housekeeping, etc.
- Direct employment in the IT services and BPO/ ITeS segment is estimated to grow by over 7% reaching 96 million in 2012-13 with over 188,000 jobs being added during the year (consisting of 30% women employees). Indirect job creation is estimated at 9.5 million.
NATIONAL POLICY ON ELECTRONICS
The National Policy on Electronics (NPE) 2012 was approved in 2012 with the vision to create a globally competitive electronics design and manufacturing (ESDM) industry to meet the country’s needs and serve the international market. Its major initiatives are:
- Setting up Semiconductor Wafer Fabs: The Government has approved setting up of two Semiconductor Wafer Fabrication (FAB) manufacturing facilities in the country. It has also approved the package of incentives for the two consortia. The Government will provide Viability Gap Funding (VGF) in the form of an interest free loan for a period of 10 years. The Government will also get 11% equity in the aforesaid protects.
- Preference to Domestically Manufactured Electronic Goods: The Government has laid down policy for providing preference to domestically manufactured electronic products (not be less than 30% of the total procurement value) in Government procurement.
- Electronics Manufacturing Clusters Scheme: Under the scheme the proposed grant-in-aid assistance is to be 50% of the project cost in the case of green field EMCs subject to a ceiling limit of 50 crore for every 100 acres of land and or brown field EMCs it would be 75% of the project cost subject to a ceiling of 50 crore.
- Modified Special Incentive Package Scheme: MSIPS is investment based scheme and the financial incentives are as under:
- 25% of capital expenditure if the ESDM unit is in non-SEZ and 20% of capital expenditure if the ESDM unit is within SEZ. This subsidy is available for investments made within 10 years from the date of approval of the project.
- 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.
- Electronics Development Fund (EDF): EDF is proposed to be set up as a “Fund of Funds” to create need based “Daughter Funds” for various innovation and manufacturing stages, with an outlay of Rs.10,000 crore. All funds are proposed to be professionally managed.
- Scheme for Mandatory Registration of Identified Electronic Products: Since 2012 scheme is in force for mandatory regime of registration of identified 15 electronic products so that these products meet specified safety standards. So far 9 labs have been recognized by BIS for testing of products under this order and a few registrations have already been done.
