Lok Sabha Question No. 876 (UNSTARRED), answered on 2024-02-07
Subject: PLI Scheme for Smartphone
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: Anurag Sharma, Pratap Chandra Sarangi, C. R. Patil

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA

## UNSTARRED QUESTION  NO. 876

TO BE ANSWERED ON 07.02.2024

## PLI SCHEME FOR SMARTPHONE

## 876.     SHRI ANURAG SHARMA: SHRI PRATAP CHANDRA SARANGI: SHRI C.R. PATIL:

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

- (a) the details of the current growth rate of smartphone production in the country;
- (b) the details of the duration of PLI scheme for smartphone production;
- (c)  whether  the  government  is  planning  to  extend  or  modify  the  PLI  scheme  based  on performance and if so, the details thereof and if not, the reasons therefor;
- (d)  whether  the  Government  has  taken  any  measures  to  expand  and  enhance  network connectivity in rural areas to facilitate use of smartphones; and
- (e) if so, the details there and if not, the reasons therefor?

## ANSWER

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

(a):  Over  the  last  several  years,  India's  electronics  ecosystem  has  seen  tremendous  growth and  expansion,  investment,  and  job  creation.  From  almost  insignificant  in  the  global electronics supply chain, India is currently rapidly becoming a significant and trusted player in the electronics GVC. Most global and Indian electronics brands are investing, growing and creating  jobs  in  the  sector.  Government  of  India's  goal  is  to  increase  India's  share  in  the electronics  GVCs  by  broadening  and  deepening  the  country's  electronics  manufacturing sector.

Smartphones  are  a  shining  example  of  the  rapid  growth,  significant  investment  and  job creation. The mobile phone production has increased ~18.5 times from INR 18,900 crore in 2014-15  to  INR  3,50,000  crore  in  2022-23  (industry  estimates).  Further,  the  exports  of mobile phone have grown ~ 57.5 times from INR 1,566 crore in 2014-15 to INR 90,000 crore in 2022-23 (industry estimates).

(b):  The  success  of  the  smartphone  segment  in  the  electronic  manufacturing  sector  in  the large part has been due to the visionary Production Linked Incentive (PLI) Scheme. The PLI scheme for Large Scale Electronics Manufacturing (LSEM) was notified on 01.04.2020.The scheme tenure for the production of smartphones is 5 years.

(c): The PLI Scheme for LSEM is in the implementation phase and no extension or revision is planned at this stage as the performance under the scheme is as per the projected outcomes.

(d) and (e): Mobile coverage for inhabited uncovered villages is provided by Government and the Telecom Service Providers (TSPs) in a phased manner. Expansion of Telecom networks by  Telecom  Services  Provider  (TSPs)  is  based  on  their  Techno  commercial  viability. However,  in  order  to  provide  telecom  connectivity  in  uncovered  remote  villages  in  the country, the Government provides financial support to the TSPs through USOF. The

Government has following on going schemes under Universal Service Obligation Fund which will provide 4G Mobile services in identified uncovered villages and locations:

- (i) 354  Uncovered  Villages  Scheme:  Under  this  scheme  villages  of  Jammu  & Kashmir,  Ladakh,  Himachal  Pradesh,  Uttar  Pradesh,  Bihar,  Rajasthan,  Gujarat, Uttarakhand and other priority areas are included
- (ii) Comprehensive Telecom Development Plan (CTDP) for mobile connectivity in the North Eastern Region
- (iii) Scheme for providing mobile services in Left Wing Extremism (LWE) affected areas
- (iv) Schemes for providing mobile services in Aspirational Districts.
- (v) Scheme for providing mobile services in Andaman & Nicobar Islands.
- (vi) 4G Saturation scheme to provide 4G services in all identified uncovered villages across the country.

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