Lok Sabha Question No. 1444 (UNSTARRED), answered on 2017-12-27
Subject: Indian IT Companies
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: PONNUSAMY VENUGOPAL

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA

## UNSTARRED QUESTION NO.  1444

TO BE ANSWERED ON: 27.12.2017

## INDIAN IT COMPANIES

## 1444.    DR. P. VENUGOPAL:

Will the Minister of Electronics & Information Technology be pleased to state: -

- (a) whether it is a fact that Indian Info Tech companies are not stealing American jobs but are creating employment avenues in the world's largest economy and if so, the details thereof;
- (b) whether it is true that the domestic IT companies are present in 200 cities in 80 countries and if so, the details thereof;
- (c) whether it is also true that the Government's objective is to make India the electronic hub of the world; and
- (d) if so, the details thereof and the steps taken by the Government in this regard?

## ANSWER

## MINISTER OF STATE FOR ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI ALPHONS KANNANTHANAM)

- (a): Yes,  Sir.    Indian  IT  companies  are  net  creators  of  jobs  in  the  USA.    The  Indian  IT companies supported over 4, 00,000 (both direct & indirect) jobs in the US in 2015.
- (b): Yes,  Sir.    Global  operating  model  of  Indian  IT  industry  has  over  700  global  Delivery Centres across 80 countries and offers flexibility in terms of business and pricing models.
- (c) and (d): Yes, Sir. Governments objective is to make India the electronics hub of the world. Some of the steps taken by the Government in this regard is as follows :
- 1) The  National  Policy  on  Electronics  (NPE  2012)  was  notified  in  October  2012  with  the vision  to  create  a  globally  competitive  electronics  design  and  manufacturing  industry  to meet the country's needs and serve the international market.
- 2) Modified  Special  Incentive  Package  Scheme  (M-SIPS)  provides  financial  incentives  to offset disability and attract investments in the Electronics Systems Design and Manufacturing  (ESDM)  sector.  The  scheme  was  notified  in  July  2012. The  scheme provides subsidy for investments in capital expenditure - 20% for investments in SEZs and 25% in non-SEZs. The scheme is available for both new projects and expansion projects.
- 3) Electronics Manufacturing Clusters (EMC) are being set up in the country.
- 4) Notifications  for  10  electronic  products  in  furtherance  of  the  Department  of  Industrial Policy and Promotion's Public Procurement (Preference to Make in India) Order 2017 have been issued on 14.9.17.
- 5) For promotion of exports in the sector, Merchandise Exports from India Scheme (MEIS) and  Export  Promotion  Capital  Goods  (EPCG)  Scheme  are  available  under  the  Foreign Trade Policy, 2015-20.
- 6) Under  the  Electronics  Hardware  Technology  Park  (EHTP)  Scheme,  approved  units  are allowed duty free import of goods required by them for carrying on export activities.
- 7) Under Foreign Trade Policy CST  reimbursement and excise duty exemption on procurement of indigenously available goods.
- 8) Tariff  Structure  has  been  rationalized  to  promote  indigenous  manufacturing of electronic goods, including inter-alia Mobile Handsets, Televisions, Electronic Components, Set Top Boxes,  LED  Products,  Medical  Electronics,  Solar  PV  Cells  and  Microwave  Ovens.  To promote domestic value addition in mobile handsets manufacturing, a Phased Manufacturing Programme(PMP) has been notified.
- 9) Mandatory  compliance  to  safety  standards  has  been  notified  for  identified  Electronic Products with the objective to curb import of sub-standard and unsafe electronics goods. As of now, 43 electronic products are under the ambit of this Order.

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