UPSC CSE Mains Syllabus: GS-3- Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth.

In news:

In the wake of the developments at the Line of Actual Control that separates India and China, India has serious reservations about deploying Chinese equipment in its telecom infrastructure.

At the same time, American sanctions against Huawei, denial of chips made on machinery supplied by American companies, makes it clear that the idea of some kind of global technological commons is an illusion.

For a country like India that seeks an autonomous geopolitical role for itself, the implication is that it must have the technological nous(common sense; practical intelligence) in all advanced areas to be truly Aatmanirbhar, self-reliant. 

Microelectronics, a sector that is controlled by a handful of companies across the globe, is an area in which India potentially has the capability and opportunity to become an autonomous global power and to offer competition to virtual monopolies.


Indian semiconductor industry:


What is needed:

India’s electronics production has increased from Rs. 1,90,366 crore (US$29 billion) in 2014-15 to Rs. 4,58,006 (US$ 70 billion) in 2018-19, at a Compound Annual Growth Rate (CAGR) of about 25%.  India’s share in global electronics manufacturing grew from 1.3% (2012) to 3.0% (2018).  It accounts jfor 2.3% of India’s GDP at present. 

Modified Electronics Manufacturing Clusters (EMC2.0) Scheme:

India has already approved financial assistance to the Modified Electronics Manufacturing Clusters (EMC2.0) Scheme for development of world class infrastructure along with common facilities and amenities through Electronics Manufacturing Clusters (EMCs). 

It is expected that these EMCs would aid the growth of the Electronic System and Design Manufacturing (ESDM sector), help development of entrepreneurial ecosystem, drive innovation and catalyze the economic growth of the region by attracting investments in the sector, increasing employment opportunities and tax revenues.

Necessary Conditions:

  1. The Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme would support setting up of both Electronics Manufacturing Clusters (EMCs) and Common Facility Centers (CFCs). 
  2. For the purpose of this Scheme, an Electronics Manufacturing Cluster (EMC) would set up in geographical areas of certain minimum extent, preferably contiguous, where the focus is on development of basic infrastructure, amenities and other common facilities for the ESDM units. 
  3. For Common Facility Centre (CFC), there should be a significant number of existing ESDM units located in the areaand the focus is on upgrading common technical infrastructure and providing common facilities for the ESDM units in such EMCs, Industrial


           Following are the expected outputs/outcomes for the Scheme:

  1. Availability of ready infrastructure and Plug & Play facility for attracting investment in electronics sector:
  2. New investment in electronics sector
  1. Revenue in the form of taxes paid by the manufacturing units

Source:” Economic Times“.


The time has come for India to shed its dependency on electronics manufacturing and become Atmanirbhar. Elaborate.