Lok Sabha Question No. 518 (UNSTARRED), answered on 2023-12-06
Subject: Manufacturing of Electronic Products
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: Ramcharan Bohra, Y. S. Avinash Reddy

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA

## UNSTARRED QUESTION NO. 518

TO BE ANSWERED ON 06.12.2023

## MANUFACTURING OF ELECTRONIC PRODUCTS

## 518.     SHRI  RAMCHARAN  BOHRA: SHRI Y.S.  AVINASH  REDDY:

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

- (a) the details of the branded electronic products being manufactured in the country, State/UT-wise;
- (b) whether local manufacturing of electronic products in the country is insufficient to meet  the demand  and if so, the details thereof;
- (c) whether the Government as  a part of the New India for Young India initiatives has set a  target of increasing  electronics manufacturing  capability up to Rs. 24 lakh crores by 2025-26 and creating  10 lakh job opportunities  in the country; and
- (d) if so, the details thereof along with the steps  being taken by the Government in this regard?

## ANSWER

## MINISTER OF STATE FOR ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI RAJEEV CHANDRASEKHAR)

(a):  Government of India envisions to position India as a global hub for Electronics System Design and Manufacturing (ESDM) by encouraging and driving capabilities in the country for  developing  core  components, including chipsets,  and  creating  an  enabling  environment for the industry to compete globally. Government of India's goal is to broaden and deepen the country's  electronic  manufacturing  ecosystem  as  well  as  increase  India's  participation  in electronics Global Value Chains (GVCs). Government has taken several measures to boost electronics  manufacturing  including  semiconductors  in  the  country  and  incentivize  large investments in the electronic goods and appliances as well as to promote exports. As a result of these measures, the manufacturing of branded electronics products is spread across India. The state-wise distribution of electronics manufacturing is placed at Annexure-I.

(b):  In FY 2022-23 the production was Rs 8,22,350 crores and demand for electronics was Rs  12,55,818  crores.  The  production  of  electronics  manufacturing  has  been  growing  at  a CAGR of 20.1% from 1,90,366 crores in FY 2014-15 to Rs8,22,350 crores in FY 2022-23 indicating high growth rate in electronic manufacturing. Further, in case of Mobiles Phones, India has now reached a stage where 99.2% of mobile handsets being used in India are made in India and we have become a mobile exporting country with USD 11.1 Bn  exports in FY 2022-23 as compared to mobile importing country in 2014-15 when almost 74% of all mobile phones sold in India were imported.

(c):   In FY 2013-14 the Electronics manufacturing was Rs 1,80,454 crore (USD 29.8 billion) and  has  grown  significantly  to  Rs  8,22,350  crore  (USD  102  billion)in  FY  2022-23  with

CAGR  of  18.4%,  which  further  expected  to  grow  upto  Rs  23,95,195  crores  (USD  300 Billion) by 2026. As per Industry estimates around 2.5 million (25 Lakh) direct and indirect jobs have been created in the electronics sector and is expected to reach 10 million (1 crore) jobs by 2025-26.

(d): With an aim to boostlocal electronics manufacturing,increase scale, competitiveness and domestic  value  addition  in  the  country,  MeitYnotifiedNational  Policy  on  Electronics  2019 (NPE 2019) on 25.02.2019 with a vision of to position India as a global hub for Electronics System Design and Manufacturing (ESDM). MeitY has also introduced Production Linked Incentive Schemes (PLI LSEM  and  PLI IT Hardware); Scheme  for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS); and the Modified Electronics Manufacturing Clusters 2.0 (EMC 2.0). Further, a program for Development of Semiconductors  and  Display  manufacturing  Ecosystem  was  also  introduced,  wherein, schemes,  viz.  ,    Scheme  for  setting  up  of  Semiconductor  and  Display  Fabs,  Scheme  for setting  up  of  Compound  Semiconductors  /  Silicon  Photonics  /  Sensors  Fab  /  Discrete Semiconductors Fab and Semiconductor  Assembly,  Testing, Marking  and  Packaging (ATMP) / OSAT and Design Linked Incentive (DLI) Schemes are being implemented.

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## Annexure-I

## State-wise distribution of electronics manufacturing

|   Sr. No | Product Segment                   | Major States                                                                                                |
|----------|-----------------------------------|-------------------------------------------------------------------------------------------------------------|
|        1 | Mobile Phones                     | Uttar Pradesh, Karnataka, Tamil Nadu, Haryana, Rajasthan, Andhra Pradesh                                    |
|        2 | IT Hardware (Laptops and Tablets) | Uttar Pradesh, Maharashtra, Andhra Pradesh, Haryana, Madhya Pradesh, Tamil Nadu, Kerala, Gujarat, Telengana |
|        3 | Consumer Electronics (TV, audio)  | Uttar Pradesh, Telangana, Andhra Pradesh, Kerala, Haryana, Jammu, Delhi, Gujarat, Tamil Nadu, Maharashtra,  |
|        4 | Hearables and Wearables           | Uttar Pradesh, Maharashtra, Delhi, Haryana, Rajasthan, Karnataka, Tamil Nadu,                               |

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