BANGALORE – India’s government is considering an electronics incentive package to spur a local market for electronics components and products.

The government is attempting to improve the incentive package introduced under its partially failed semiconductor policy of 2007, which only attracted investments from the solar photovoltaic segment. The new focus reportedly will no longer be on large projects, but will focus on all aspects of the value chain of electronic systems.

The government estimates India's demand for electronic hardware will grow to $400 billion by 2020, compared to $45 billion in 2009. However, at current growth rates, domestic production could be a quarter of the demand by 2020.

The package includes subsidies for lowering the country’s energy and transport costs and improving infrastructure.