NITI Aayog has almost finalised a policy for encouraging manufacturing of electronics in the country, which is likely to be placed before the Union Cabinet for its approval.
The policy will boost manufacturing of electronic products and provide a host of incentives like tax holiday to attract investment.
In view of great potential of electronics manufacturing sector, NITI Aayog has prepared a draft strategy paper titled 'Make in India-Strategy for Electronic Products'.
NITI put the draft in public domain for comments in May this year. The stakeholders and the general public were asked to submit the views and comments by June 30, 2016.
"We would also want to provide for the 10-year tax holiday on investments of USD 1 billion or more that can also create 20,000 jobs. This would help bring some large foreign firms to India," Aayog had said in the paper.
The government think-tank has also been asked to devise an export-oriented strategy for the industry, saying the domestic market at USD 65 billion remains small in relation to the world market.
NITI suggested that the country needs to forge free trade agreements (FTAs) to create duty-free market for electronic goods. It said India's current approach with respect to FTAs is defensive because it is a much larger importer.