The Union Cabinet on Thursday approved the National Policy on Electronics 2012, which aims to provide a boost to indigenous manufacturing of electronic goods.

The official statement said that the Cabinet finalized the National Policy on Electronics 2012 based on feedback on the draft for the same from various stakeholders.

Under the new electronics policy, the government aims to create an eco-system for a worldwide competitive Electronic System and Design & Manufacturing sector in the country to reach a turnover of around US$ 400 billion by the year of 2020.

It will attract an investment of around US$ 100 billion and generate employment for nearly 28 million people.

At the current rate of growth, domestic production of electronics can cater to a demand of just $100 billion by the year of 2020, while demand will soar to an estimated of $400 billion.

The official statement said, "This aggregates to a demand supply gap of nearly USD 300 billion by 2020. Unless the situation is corrected, it is likely that by 2020, electronics import may far exceed oil imports."

The Free Trade Agreements and Preferential Trade Agreements with various countries force India to import electronics goods either at zero duty or at a very low duty, which puts indigenous electronics manufacturers at an unfavorable position.