Lok Sabha Question No. 188 (UNSTARRED), answered on 2018-07-18
Subject: Manufacturing of Electronic Items
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: JUGAL KISHORE SHARMA

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA

## UNSTARRED ADMITTED QUESTION NO. 188

TO BE ANSWERED ON 18.07.2018

## MANUFACTURING OF ELECTRONIC ITEMS

## 188.       SHRI JUGAL KISHORE:

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

- (a)    the details of the branded electronic items being manufactured indigenously in the country, State/UT-wise;
- (a) whether the indigenous manufacturing of the electronic items is adequate to meet the demand within the country;
- (b) if so, the details thereof; and
- (c) the  details  of  the  steps  taken  by  the  Government  to  promote  the  domestic research and development for manufacturing of electronic items in the country?

## ANSWER

## MINISTER OF STATE FOR ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI S.S. AHLUWALIA)

(a) to (c): Indigenously manufactured branded (Foreign and Indian) electronic items are available across various sub-sectors viz., Consumer electronics; Mobile handsets; Industrial  electronics;  LED  lighting  products;  Computers,  peripherals  and  related products;  Communication  &  Broadcasting  equipment;  Strategic  electronics  and Components. The major brands which are involved in indigenous manufacturing of some of the key segments of electronic items are given below:

-  Consumer electronic items:  LG, Samsung, Panasonic, Haier, Philips, Videocon, Onida, T-Series, Onkyo, Sonodyne, Ahuja, Ajanta, etc.
-  Mobile handsets:  Apple,  Samsung,  Nokia  (TNS),  Lava,  Vivo,  Oppo,  Huawei, Micromax, Sony, LG, HTC, Karbonn, Xiaomi, Lenovo, Motorola, Intex, etc.
-  LED  lighting  products:  Philips,  Bajaj,  Crompton,  Eveready,  Havells,  Osram, Halonix, Surya, Wipro, etc.
-  Computers,  peripherals  &  related  products:  Acer,  HP,  Dell,  Lenovo,  Cisco, Samsung, Datamini, LG, Lipi, TVSE, Smart Link, Prysm, etc.

While the indigenous manufacturing of electronic items is not sufficient to meet the domestic demand, it is increasingly being met out of domestic production. As a result of  initiatives  taken  by  the  Government  under  the  aegis  of  National  Policy  on

Electronics, 2012, the domestic production of electronic items has increased substantially from Rs.1,90,366 crore in 2014-15 to Rs.3,87,525 crore in 2017-18, at a Compound Annual Growth Rate (CAGR) of 26.7%.

(d):    Government has taken following steps to promote the domestic research and development (R&D) for manufacturing of electronic items in the country:

- (i) Ministry of Electronics and Information Technology (MeitY) provides grant-inaid support to institutes of higher learning like IITs, IISc, Central Universities and  R&D  Organizations  to  conduct  research  in  identified  thrust  areas.  These research programmes are aimed to deliver proof of concept, technology/ product development  and  transfer  of  technology.  During  the  last  three  years,  several research initiatives have been taken in these areas. These research programmes also result in generation of specialized manpower to support 'Make in India'.
- (ii) Keeping in view the huge indigenous requirement on account of roadmap for digitalization  of  the  broadcasting  sector,  a  Conditional  Access  System  (iCAS) has been developed in Public-Private Partnership mode to promote indigenous manufacturing  of  Set  Top  Boxes  (STBs).  The  iCAS  is  available  to  domestic STB manufacturers at a price of USD 0.5 per license for a period of three years, as  against  market price  of USD 3-5 per license for other competing products. The implementation of iCAS in the cable networks is underway.
- (iii) An Electropreneur park has been set up in New Delhi for providing incubation for development of Electronic System Design & Manufacturing (ESDM) sector which will contribute IP creation and Product Development in the sector.
- (iv) National  Centre  of  Excellence  in  Large  Area  Flexible  Electronics  (NCFLEX) has been set up in IIT-Kanpur with the objectives to  promote  R&D; Manufacturing;  Ecosystem;  Entrepreneurship;  International  Partnerships  and Human  Resources  and  develop  prototypes  in  collaboration  with  industry  for commercialization.
- (v) National Centre of Excellence for Technology on Internal Security (NCETIS) has been set up at IIT-Bombay with the objective to address the internal security needs  of  the  nation  on  continuous  basis  by  delivering  technology  prototypes required  for  internal  security  and  to  promote  domestic  industry  in  internal security.
- (vi) Centre for Excellence on Internet of Things (IoT) has been set up in Bengaluru jointly with NASSCOM.
- (vii) An Incubation centre with focus on medical electronics has been set up at IITPatna.
- (viii) As per extant FDI policy, FDI upto 100% under the automatic route is permitted for electronic product manufacturing, including R&D  therein,  subject to applicable laws/ regulations; security and other conditions.
- (ix) Electronics Development Fund (EDF) has been set up as a 'Fund of Funds' to participate  in  professionally  managed  'Daughter  Funds'  which  in  turn  will provide  risk  capital  to  companies  developing  new  technologies  in  the  area  of electronics,  nano-electronics  and  Information  Technology  (IT).  This  fund  is expected to foster R&D and innovation in these technology sectors. Twenty two Daughter Funds have been approved for investment through EDF.
- (x) Government also initiated Visvesvaraya PhD Scheme in the Electronics System Design  and  Manufacturing  (ESDM)  and  IT/  ITES  areas  to  give  thrust  to research  &  development,  create  an  innovative  ecosystem  and  enhance  India's competitiveness in these knowledge intensive sectors. The Scheme was initiated in  the  Year  2014  with  a  budget  outlay  of  Rs.466  crores  for  nine  years.  At present,  967  Full  Time  and  178  Part-Time  PhD  Scholars  at  94  academic institutions across the country are pursuing PhD under the Scheme.
- (xi) To  offset disability and  attract investments  in electronics  manufacturing, Modified  Special  Incentive  Package  Scheme  (M-SIPS)  was  launched  by  the Government in July 2012. The scheme has been suitably amended from time to time.  The  scheme  mainly  provides  20-25%  subsidy  for  investments  in  capital expenditure for setting up of an electronic manufacturing facility (20% for SEZ Units  and  25%  for  non-SEZ  Units).  The  incentives  are  available  for  44 categories  of  electronic  products  and  product  components.  Under  the  scheme, expenditure on captive research and development including associated software costs and software license fees; purchase of technology, IPRs, patents, copyrights is treated as part of the capital expenditure.

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