The new integrated policy measures on electronics were announced in Parliament on 21 March 1985.

Electronics improves productivity and efficiency in different sectors of our national economy: In fact, electronics can contribute significantly in improving the capital output ratio of several of our projects and investments. It is, therefore, necessary that we use this opportunity to give an added impetus to the economy through this technology. Day by day, the software content of electronics is increasing and India is most appropriately placed to take advantage of this.

Taking all these reasons into account, the Government has decided that there is a need to accelerate the use of electronic equipment such as communication equipment including mass communication, computerised control equipment, data communication and data processing equipment.

Henceforth to optimally utilise the investment, 'broad band' licences will be issued far the following:

1. Entertainment electronics covering radio receivers, tape recorders, two-in-ones, amplifiers, record players, record changers, TV sets--black and white and colour, CCTV systems, but excluding those reserved for small scale industry;
2. Electronic toys, including radio controlled ones and games;
3. Computer peripherals;
4. Electronic test and measuring instruments, excluding those reserved for small-scale industry; and
5. Discrete semi-conductor devices.

Keeping in view the approach of producing electronic equipment at near international prices, Government is drawing up an industrial and Licensing Policy for the manufacture of video cassette recorders/video cassette players and microwave ovens on the basis of the following:

VCR/VCP: The Department of Electronics or its designated agency will purchase technology for VCR/YCP, including the technology for manufacture of Deck Mechanism. Deck Mechanism includes Head/hum. Assembly will be manufactured by a Public Sector Enterprise to be designated by the Department of Electronics. In addition to this, another unit in private sector has already been approved for the manufacture of Deck Mechanism.

The existing licensed/registered units which wish to enhance their capacity will be asked to apply afresh and their applications will be considered along with other applications. A minimum complement of production and test equipment, as decided by the Department of Electronics time to time would be required to be installed in each production unit.

Microwave oven: The Department of Electronics or its designated agency will purchase technology for this item. The same approach as given for VCR/VCP Policy will be adopted.

1. Semi-conductor Complex Ltd. (SCL) would be allowed to manufacture and sell low cost DEW modules to DEW assembles, both in the State public sector and small-scale units, as well as other units engaged in the manufacture of mechanical watches, handicrafts, etc.
2. The small-scale units may be permitted to sell low cost DEW or other DEW module based products directly in the market. Ii the demand outstrips the capacity of SLC, a second unit in the private sector will be permitted to manufacture these modules.

1. All consumer durable products would be delicenced for applicants who will not draw on the resources of financial institutions.
2. Quality and Reliability:

The Government will set up adequate facilities for quality certification of electronic consumer durable goods so that consumers are assured of reliable products.

3. Liberal Growth: At the time of issuing industrial licences for any new product, the anticipated demand in the foreseeable future, as well as the techno-commercial viability, will be kept in mind. The Government will insist on a minimum investment in capital equipment to ensure adequate added value in the country and technology absorption and development. A minimum production capacity will be insisted on. Once a licence has been issued, the licence holder will be assured of liberal upward growth.
4. In approving phased manufacturing programmes, the Government will ensure that reliance on imported populated printed circuit board is reduced and genuine manufacture within the country is encouraged.
5. Indian companies including those with foreign equity of 40 per cent or less will no longer be debarred from any field of electronics which is open to the organised private sector, only because of their foreign equity holding.
6. FERA Companies: The Government would welcome foreign equity companies (i.e. those having more than 40 per cent foreign equity) to set up manufacturing facilities for electronic components, materials and other closely held high technologies, where the country has not been able to invest sufficiently in research and development.
7. Import of technology would be permitted freely to develop an appropriate electronics base in the country. However, industries will be encouraged to establish in-house technology base so that repeated import of technologies do not have to be resorted to.
8. Centralised purchase of technology will be resorted to only if a variety of the technologies render the indigenous products costly in comparison with international prices, because one of the objectives of this policy is to make equipment available at near international price.
9. Location: Electronics industry will be allowed to be established in any of the permissible locations. Greater efforts will be made to develop the electronics industry in the hill districts on a larger scale.
10. Exemption from MRTP Act: Electronic components (other than all types of integrated circuits, viz. VLSI, LSI, MSI, SSI Semi-conductors, Photo-voltaic components, computer peripherals, computer software, magnetic tapes for use in computer, video equipment, hard discs, floppy discs and diskettes for computers and test and measuring instruments, are already exempted from sections 21 and 22 of MRTP Act. This exemption will be extended to the following items:

• materials for electronics,
• computers, broadcasting equipment,
• control instrumentation
• industrial and professional electronics and
• communication equipment.

1. The Finance Minister, in his Budget Speech, has removed excise duty on 24 types of electronic components, computers and computer peripherals. This is another step in reducing the prices of locally manufactured electronic goods bringing them closer to international levels.
2. Manpower Development: Electronics is a knowledge-intensive area and is characterised by rapid innovation as well as obsolescence. A regular supply in large numbers, of specialised and trained manpower and a continuous updating of the skills of this manpower stock are, therefore, of crucial importance for the growth of electronics, be it in the held of research and development, production, maintenance, servicing or applications. In the context of Government's declared objective of bringing about a rapid development of the electronics sector, the urgent need to devote attention to manpower training in the electronics sector has been increasingly engaging the attention of the Government. The various initiatives, steps and programmes being undertaken in this crucial area are summarised below:

(i) Teachers' training programmes are being initiated at 5 major institutions, viz., the four IITs at Mumbai, Delhi, Kanpur and Chennai, and at Jadavpur University for training teachers in computer science.

(ii) Teachers' Training programme for Diploma in Computer Application: This programme has been initiated at six institutions across the country. Training for teaching DCA courses is provided through 4 modules of six weeks duration each.

(iii) Master of Computer Application programme has been initiated in 14 centres.

(iv) Master's programme in electronics is expected to be started in three universities next year. In addition to the traditional Mathematics, Physics and Chemistry combination available now at B.Sc. degree level, the introduction of Electronics as a separate subject in different combinations has also been finalised.

(v) 28 centres have been identified for starting one-year Post-B.Sc. Diploma in Computer Application, out of which 17 centres have started this course.

(vi) 18 months Post-Polytechnic DCA programme in polytechnics: This programme has been introduced at 16 centres.

(vii) Training Course in the Industrial Training Institutes (ITIs) in two trades "Console, Operator-cum-Programme Assistant", and "Data Preparation Assistant" have been finalised for 13 centres.

(viii) Continuing Education Programme at IIT, Delhi: The programme aims at providing modular courses of short duration to computer professionals from industry and teachers from academic institutions. 60 per cent of the seats are reserved for teachers. The programme started in December 1984.

3. To plan this industry in an integrated manner and to ensure minimum drain on India’s foreign exchange, it is necessary to have detailed data from all electronic manufacturers, both in the organised and the small-scale sectors. It is, therefore, proposed to introduce a compulsory single proforma, which would be submitted by the industrial units, once a year, to the Department of Electronics.
4. In order to speed up scrutiny of proposals by financial institutions, they would be encouraged to setup separate cells for electronics and would be invited to participate in the project appraisal committees of the Department of Electronics.
5. The Computer Policy announced on 19th November, 1984, will be suitably extended and applied by the Department of Electronics to electronic control instruments, instrumentation and systems, industrial and professional electronics and data communication equipment.

The Government had earlier announced that components need to be manufactured in large volumes. It is, therefore, proposed to de-reserve some of the components which today are reserved for small-scale sector.

6. Normally, manufacture of components is not permitted from intermediate levels. However, in the case of bipolar, linear and digital integrated circuits where heavy investments are called for, industry will be permitted, to begin with, to assemble from intermediate state pro- vided an investment of at least Rs. 5 crore is made.
7. Communications: In the area of communications, certain product lines were thrown open to the private sector as announced by the Deputy Minister for Electronics in March 1984. As a result of this policy, 5 Letters of intent for electronic PABXs and 27 Letters of Intent for electronic telephone instruments have been issued for the private sector. One Letter of Intent for the manufacture of the electronic teleprinter, two for manufacture of public telephones, and two for telephone answering and recording machine have also been issued to the private sector. It was proposed earlier that for switching systems, private party's participation beyond 49 per cent would not be permitted; however, considering the Limitations of the Government's resources and the gap in availability which is likely to emerge in the switching area, it is now proposed to set up an ESS factory using the technology that is being developed indigenously by the Centre for Development of Telematics (CDOT). The investment of the Government in this venture would be restricted to26 per cent. Twenty five per cent would be offered to private sector party and 49 per cent would be thrown open to the general public. Necessary action to modify the Industrial Policy Resolution will be taken.

23. Research and Development: In order that India’s electronics industry in the Eighth Five Year Plan does not have to depend largely on foreign technologies as is the position today, the Government has taken up several major research and development programmes. It has set up a Centre for Development of Telematics (CDOT); it has been encouraging research through a National Radar Council; it is rendering financial assistance for research in education institution and public sector enterprises through its Technology Development Council. It has recently announced the setting up of a National Microelectronics Council and proposes to set up a Centre for development of materials for electronics.