New Delhi: In a move that can boost electronic production in India, the central government has issued a directive to all the ministries to give preference to domestically manufactured electronic products in government procurement.

In a statement issued on Saturday, the Prime Minister’s Office said, “as part of Prime Minister Narendra Modi’s Make in India initiative, the Union government has issued strict guidelines to all ministries to provide preference to domestically manufactured electronic products in government procurement."

India imports 65% of the current demand for electronic products, most of it from China. At the current rate, the country’s electronics import bill may well surpass its oil import expenses by 2020.

In September, Modi launched the “Make in India" campaign to attract foreign investors in making the country a global manufacturing hub. The government has identified as many as 25 sectors, including textiles, automobiles, chemicals, IT and pharmaceuticals, as key areas under the initiative.

All the government ministries and departments will need to identify department-specific domestically manufactured electronic products for procurement and notify them within a fortnight, a committee of secretaries has decided, according to the statement.

All government departments have been asked to adhere to a tender template, which has been issued by the department of electronics and information technology (DeitY) for procurement of electronic items. DeitY has also been asked to put in place an online monitoring system for reporting by ministries and government departments as well as state governments, on procurement of electronic products.

The system, which is set to be operational within 15 days, will capture the break-up of domestically manufactured electronic equipment by value.

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