ESDM is of strategic importance as well. Not only in internal security and defence, the pervasive deployment of electronics in civilian domains such as telecom, power, railways, civil aviation, etc. can have serious consequences of disruption of service. This renders tremendous strategic importance to the sector. The country, therefore, cannot be totally dependent on imported electronic components and products.

Among other things, the Policy aims to create an eco-system for a globally competitive ESDM sector in the country to achieve a turnover of about $400 billion by 2020 involving investment of about $100 billion and employment to around 28 million people at various levels.

It will build on the emerging chip design and embedded software industry to achieve global leadership in Very Large Scale Integration (VLSI), chip design and other frontier technical areas and to achieve a turnover of $55 billion by 2020.

A strong supply chain of raw materials, parts and electronic components will be built to raise the indigenous availability of these inputs from the present 20-25 per cent to over 60 per cent by 2020.

The export in ESDM sector will be raised from $5.5 billion to $80 billion by 2020.

An institutional mechanism will be created for developing and mandating standards and certification for electronic products and services to strengthen quality assessment infrastructure nationwide.

Based on Cabinet approval, a high level Empowered committee has been constituted to identify and shortlist technology and investors for setting up two semiconductor wafer manufacturing fabrication facilities.

Based on another Cabinet approval a policy for providing preference to domestically manufactured electronic goods has been announced. Separate proposals have also been considered by the Cabinet for approval of Modified Special Incentive Package for the ESDM Sector and for setting up of Electronics Manufacturing Clusters (EMCs).