NEW DELHI: Centre has fixed target of $400 billion in revenue from the electronics manufacturing sector by 2020 as against $20 billion in 2009 since India is lagging behind in electronics manufacturing for quite some time now.

The target is part of the draft National Policy of Electronics, 2011. It has also called for India to invest $100 billion in the electronics manufacturing sector and also create 28-million jobs by 2020. It will be linked with the benefits of the Manufacturing Policy and National Investment and Manufacturing Zones (NMIZs).

The initiative holds significance since India’s electronics hardware production makes up for just nearly 1.31% of the international production and India's imports are likely to surge from 50% to 75%.

Moreover, the policy also recommends to establish more than 200-electronic manufacturing clusters in numerous states and also create a stable tax regime for the electronics systems and design manufacturing industry (ESDM). Furthermore, this policy is first of its kind on IT and telecom.

Out of the $400 billion in sales that India aims to generate, nearly $55 billion will be from chip design and also software industry, while $80 billion will be from the exports in the sector. The draft policy also recommends tax incentives, special funding, 200-manufacturing clusters and preferential access.