The general incentives under the ICT Policy are to be automatically applicable to the electronic hardware industry, according to the draft Andhra Pradesh Electronics Hardware Policy 2012-2017.

This is in view of the fact that the electronic hardware industry has a high potential for domestic value addition, especially in some of its segments like semiconductor design and electronics system/ product design.

The draft, circulated at a workshop here on Wednesday, outlined a host of incentives for the electronic manufacturing industry.

The policy noted that a number of challenges, like poor infrastructure and lack of R&D focus, were preventing the industry from reaching its potential and compete with finished products from China and Taiwan.

To help the sector penetrate the global markets the government has listed out some incentives after discussions with stakeholders like the ELIAP. The policy covers manufacturers of industrial electronics, computers and peripherals, communication, electronic manufacturing services and broadcast strategic electronics and components.

Apart from creating a single window for clearances the government is offering incentives for establishing hardware electronic industry in Tier II, Tier III towns. Further, the Government plans to encourage buying products made in India in its programmes.