Lok Sabha Question No. 6006 (UNSTARRED), answered on 2018-04-04
Subject: Employment Generation in IT Sector
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: NALIN KUMAR KATEEL, DODDAALAHALLI KEMPEGOWDA SURESH

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA UNSTARRED  QUESTION NO. 6006

TO BE ANSWERED ON 04.04.2018

## EMPLOYMENT GENERATION IN IT SECTOR

## 6006.    SHRI NALIN KUMAR KATEEL: SHRI D.K. SURESH:

Will the Minister of ELECTRONICS AND INFORMATION TECHNOLOGY be pleased to state:

- (a) the details of the total number of employment generated in the Electronics and IT industry in the country;
- (b) whether it is true that India has become a promising centre for mobile manufacturing in recent years;
- (c) if  so,  the details of the number of mobile factories set up in the country during the last three years including current year, year and State-wise;
- (d) whether the Government is taking any measures to encourage more mobile manufacturing factories in the country; and
- (e) if so, the response the Government has received in this regard?

## ANSWER

## MINISTER OF STATE FOR ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI K.J. ALPHONS)

- (a): As per the National Association of Software and Services Companies (NASSCOM), the Information Technology (IT) sector has provided employment to about 39,68,000 persons in the country. As per the Confederation of Indian Industry (CII), the employment in Electronics hardware manufacturing industry in the country is estimated to be about 13,00,000 persons.
- (b) and  (c):  India  has  become  a  promising  centre  for  mobile  handsets  and  their  parts/ components manufacturing in recent years. The details of the number of mobile handsets and their  parts/  components  manufacturing  factories  set  up  in  the  country  during  the  last  three years, including 2017-18, is given below:

| No. of Factories   | No. of Factories   |   No. of Factories |
|--------------------|--------------------|--------------------|
| 1                  | Mobile Handsets    |                 57 |
| 2                  | Adapter/ Chargers  |                 27 |
| 3                  | Battery Packs      |                 20 |
| 4                  | Mechanical Parts   |                  7 |
| 5                  | Wired Headsets     |                  4 |
| 6                  | USB Cables         |                  3 |
| Total              | Total              |                118 |

The State-wise breakup of number of factories is as under:

| S.No.   | State       |   No. of Factories |
|---------|-------------|--------------------|
| 1       | UP          |                 51 |
| 2       | Haryana     |                 11 |
| 3       | Delhi       |                  7 |
| 4       | Tamil Nadu  |                  7 |
| 5       | Telangana   |                  7 |
| 6       | Uttarakhand |                  6 |
| 7       | AP          |                  6 |
| 8       | HP          |                  6 |
| 9       | Maharashtra |                  6 |
| 10      | Karnataka   |                  4 |
| 11      | Rajasthan   |                  3 |
| 12      | Daman       |                  2 |
| 13      | Punjab      |                  1 |
| 14      | West Bengal |                  1 |
| Total   | Total       |                118 |

(d)    and  (e):  Promotion  of  electronics  hardware  manufacturing,  including  mobile  handsets  and  their parts/ components, is one of the pillars of Digital India Programme of the Government and Government is taking several measures to promote electronics hardware manufacturing, including encouraging more mobile handsets and their parts/ components manufacturing factories in the country. These include:

- (i) Modified  Special  Incentive  Package  Scheme  (MSIPS)  provides  financial  incentives  to  offset disability and attract investments in the Electronics Systems Design and Manufacturing (ESDM) sector.  The  scheme  is  available  for  both  new  projects  and  expansion  projects,  and  is  open  to receive applications till 31.12.2018.
- (ii) Tariff Structure has been rationalized to promote indigenous manufacturing of electronic goods, including inter-alia  manufacturing of mobile handsets and their parts/ components. To promote domestic value addition in mobile handsets and their parts/ components manufacturing, a Phased Manufacturing  Programme  (PMP)  has  been  notified.  As  a  result,  India  has  rapidly  started attracting investments into this sector and significant manufacturing capacities have been set up in the country during the past three years.

As  per  Indian  Cellular  Association  (ICA),  the  production  of  mobile  handsets  has  gone  up  from about  6  crore  units  valued  at  Rs.18,900  crore  in  2014-15  to  about  22.5  crore  units  valued  at Rs.1,32,000  crore  in  2017-18.  118  units  manufacturing  mobile  handsets  and  components  have been set up in the country during the last three years. These units are providing employment to about 4.5 lakh persons (direct and indirect). All major brands (both foreign and Indian) either have already set up their own manufacturing facilities or are in the process of doing so or have subcontracted  manufacturing  to  Electronics  Manufacturing  Services  (EMS)  companies  operating within the country.

- (iii) To create and strengthen the infrastructure ecosystem for electronics manufacturing, Electronics Manufacturing Clusters (EMC) are being set up in 15 States. (iv) Approvals for all foreign direct investment up-to 100% in the electronic hardware manufacturing sector are under the automatic route. For promotion of exports in the electronic hardware manufacturing sector, benefits are available under the Merchandise Exports from India Scheme (MEIS) and Export Promotion Capital Goods
- (v) (EPCG) Scheme of the Foreign Trade Policy, 2015-20.

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