Digital Security of Bharat: Reverse Logistics of E-waste & Semi Conductor Manufacturing

Electronic products imports into India – USD 56 Billion and 11% in total import

The ability of India to manufacture semi conductors and electronic products will place her in a more powerful position in the world map. The survival of a tiny country Taiwan against the giant China is a classic example of this. Was it one of the reasons for US and Australian Navy to always flex muscle in the Chinese backyard - South China Sea apart from possible regime change in North Korea? Of course, it is all about Digital Security and Geopolitics of Islands claimed by South Korea.

The warehousing and transporting of goods to end consumer does not necessarily mark the end of the supply chain process.  Reverse logistics is another type of warehousing activity – referring to items that are going from the end user back to the distributor or manufacturer (some as defective piece or for environmental reasons). India’s digital goods imports have increased manifolds and has created a huge size of E-waste.  The E-Waste (Management and Handling) Rules, 2011 and subsequent amendments stipulate Extended Producer Responsibility, which makes manufacturers liable for safe disposal of electronic goods. India may bring out a policy on imports on Electrical and Electronic goods that the importer will become responsible to re-export E-waste or recycle to recreate value to serve domestic manufacturing units of semi conductors and other electronic products. 

The appropriate management of entry and exit of such Digital Goods is essential in view of smooth flow of E-waste. The global precedence for such Reverse Logistics on E-waste policies were issued by the European Commission in the year 2002.  Similarly, the Reverse Logistics policies and procedures are available in other products, too.  The compliance rules of Reverse Logistics will enable government to carefully mitigate “Excess Imports” in our difficult times and also ensure Minimum Export Value through E-Waste. The above will also comply WTO Rules of Origin as well as Technical Barriers To Trade if needed in this New World Order.

South Korea, one of the largest producers of electronics managed to recycle 21 per cent of the total 0.8 million tonnes of E-waste that it produced in 2015. The Scheme for Promotion of manufacturing of electronic components and semiconductors (SPEC) is announced to ensure India’s Digital Security.  This will help Bharat to achieve another major objective - to reduce electronic imports. If a link could be created between E-Waste (Management and Handling) Rules, 2011 and SPEC scheme, Government of India could perhaps create cheaper domestic raw material for the manufacturing units in electronic products.