Competitive Exams: Current Affairs 2012: Electronics Manufacturing Clusters (EMCs) Scheme

  • Electronics Manufacturing Clusters (EMCs) would aid the growth of the Electronics Systems Design and Manufacturing (ESDM) sector, help development of entrepreneurial ecosystem, drive innovation and catalyze the economic growth of the region by increasing employment opportunities and tax revenues.

  • The proposed EMCs scheme would support setting up of both Greenfield and Brownfield EMCs.

  • The proposed scheme is expected to help flow of investment for the development of world-class infrastructure specifically targeted towards attracting investment in the ESDM sector.

  • Nearly 28 million persons are expected to be employed, directly or indirectly for the ESDM turnover to reach USD 400 billion.

  • The policy covers all States and districts and provides them an opportunity to attract investments in electronics manufacturing.

  • The importance of clusters in ESDM is a well accepted phenomenon worldwide. A well developed cluster can give a unit located in it a cost advantage of 5 to 8% because of various reasons such as increased supply chain responsiveness, consolidation of suppliers, decreased time-to-market, superior access to talent and lower logistics costs. The cluster development approach also helps in the development of entrepreneurial ecosystems which drive innovation and catalyze the economic growth of a region by increasing employment opportunities and tax revenues.

Background-Draft National Policy on Electronics

  • As part of the vision to make India a leading destination for the ESDM sector, the draft National Policy on Electronics (NPE) proposes to achieve a domestic production of about USD 400 Billion by 2020 in the ESDM sector by creating an industry friendly policy framework and ecosystem which provides a level playing field for the domestic industry.

  • The draft NPE also proposes to set up two semiconductor wafer manufacturing facilities and to create and sustain a vibrant research and development and innovation eco-system in the ESDM sector.

Setting up of EMCs is an integral part of this strategy.

Courtesy: The Hindu