Lok Sabha Question No. 906 (UNSTARRED), answered on 2024-02-07
Subject: Electronic Consumer Items
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: Keshari Devi Patel

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOKSABHA

## UNSTARRED  QUESTION NO. 906

TO BE ANSWERED ON 07.02.2024

## ELECTRONIC CONSUMER ITEMS

## 906. SHRIMATI KESHARI DEVI PATEL

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

- (a)  whether  'Made  in  India'  has  been  launched  for  various  sectors  such  as  Electronic Consumer items such as Smartphones and Defence, etc.;
- (b) if so, the details thereof;
- (c) whether there has been delay in delivery of vehicles due to delay in getting the said chip; and
- (d) if so, the details thereof?

## ANSWER

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

(a)  and  (b):    Over  the  last  nine  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  Global  Value  Chains  (GVCs)  by  broadening  and  deepening  the  country's electronics manufacturing sector. Government has taken several measures to boost electronics manufacturing including smartphones in the country and incentivize large investments in the electronic goods and appliances as well as to promote exports

'Make in India' initiative was launched by the Government of India on 25th September, 2014 to facilitate investment, foster innovation, build best in class infrastructure, and make India a hub for manufacturing, design, and innovation. Electronics System Design and Manufacturing  (ESDM)  and  Defence  sectors  are  among  the  major  sectors  under  this initiative. Further, Government of India has also promoted domestic manufacturing of goods through public procurement orders, Phased Manufacturing Programme (PMP), Schemes for Production  Linked  Incentives  for  large  scale  electronic  manufacturing  and  Scheme  for Promotion  of  Manufacturing  of  Electronic  Components  and  Semiconductors  (SPECS)  for domestic  manufacturing  of  electronic  components  in  order  to  strengthen  the  electronics manufacturing ecosystem in the country.

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. 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).

(c)  and  (d):  The  chip  shortage  had  impacted  many  industries  worldwide  with  auto  and consumer electronics industries among the most affected sectors. The shortage first emerged after  the  Covid-19  pandemic,  due  to  lockdowns  and  restrictions.  The  supply  side  problem transformed into a demand side problem as economies started recovering, which increased the consumption  of  electronic  goods  across  various  segments.  Some  key  reasons  behind  the global  chip  shortage  were  supply  chain  disruptions  due  to  the  pandemic,  a  sharp  rise  in demand for consumer electronic goods and rapid digitization of many sectors of the economy. As  per  various  industry  reports,  the  situation  of  shortages  of  semiconductors  has  already started easing out.

To widen and deepen electronics manufacturing, the Union Cabinet on 15.12.2021, approved a  comprehensive  program  with  an  outlay  of  INR  76,000  crore  for  the  development  of Semiconductors and Display manufacturing ecosystem aims to provide financial support to companies investing in semiconductors, display manufacturing and design ecosystem. This will serve to pave the way for India's growing presence in the global electronics value chains. The  modified  programme  offers  Fiscal  Support  of  50%  of  Project  Cost  uniformly  for semiconductor fabs across  the  technology  nodes  as  well  as  for  compound  semiconductors, packaging and other semiconductor facilities.

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