new delhi oct 10 the it ministry looks to create a usd 400 billion electronics manufacturing industry by 2025 with mobile devices segment accounting for threefourths of the production according to the draft electronics policypromote domestic manufacturing in the entire valuechain of esdm electronic system design and manufacturing for economic development to achieve a turnover of usd 400 billion by 2025 the draft national policy on electronics npe released by the ministry of electronics and it on wednesday proposes the proposed policy aims to double target of mobile phone production from 500 million units in 2019 to 1 billion by 2025 to meet the objective this usd 400 billion turnover shall include targeted production of 10 billion mobile handsets by 2025 valued at usd 190 billion approximately rs 13 lakh crore including 600 million mobile handsets valued at usd 110 billion approximately rs 7 lakh crore for export the draft saidaccording to the draft the government plans to end modified special incentive scheme with with schemes that it will find easier to implement such as interest subsidy and credit default guarantee etc modified special incentive package scheme msips was launched in 2012 which provided for capital subsidy of 25 per cent for electronics industry located in nonsez area and 20 per cent for those in sez areas as on september 30 2018 265 applications with proposed investment of rs 61925 crore have been received under msips out of which 188 applications with proposed investment of rs 40922 crore have been approved and the investment of rs 8335 crore has been made by 139 applicants the draft said the current npe in place had proposed creation of 200 electronic manufacturing clusters emcs by 2020 that will house entire ecosystem for development and production of specific category of products according to the draft 20 greenfield emcs and three brownfield emc projects have been sanctioned with the project outlay of rs 3898 crore including rs 1577 crore from the government of india the policy proposes to push development of core competencies in all the subsectors of electronics including electronic components and semiconductors defence electronics automotive electronics industrial electronics strategic electronics etc the draft proposes suitable direct tax benefits including interalia investmentlinked deduction under income tax act for electronics manufacturing sector for setting up of a new manufacturing unit or expansion of an existing unit the proposal includes increasing tax benefits on expenditure incurred on research and development enhancing rate of duty drawback for electronics sector reimbursement of state levies and other levies for which input tax credit is not available allowing duty free import of secondhand capital goods for electronics hardware manufacturing etc prs mr mr