Lok Sabha Question No. 2437 (UNSTARRED), answered on 2024-12-10
Subject: Make in India Initiative for Electronic Firms
Ministry: COMMERCE AND INDUSTRY
Asked by: Shri Manickam Tagore B

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

## LOK SABHA

UNSTARRED QUESTION NO. 2437. TO BE ANSWERED ON TUESDAY, THE 10 TH  DECEMBER, 2024.

## MAKE IN INDIA INITIATIVE FOR ELECTRONIC FIRMS

## 2437.  SHRI MANICKAM TAGORE B:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state:

## वाणिज्य एवं उद्योग मंत्री

- (a) the details of data on the exact reduction in imports achieved under the 'Make in India' initiative for electronic firms in Financial Year 2023-24;
- (b) the extent to which the Government ensured that local manufacturing promotes quality and affordability in consumer electronics, if so, the details thereof;
- (c) the details of percentage of components are currently sourced locally for mobile phones and home appliances;
- (d) whether  the  Government  is  having  outline  plans  to  increase  localisation  in critical components like semiconductors and display panels, if so, the details thereof;
- (e) the  details  of  incentives  have  been  provided  to  electronics  companies  to promote  local  manufacturing  under  the  Production-Linked  Incentive  (PLI) scheme;
- (f) the extent to which the Government support Small and Medium Enterprises (SMEs) in the electronics sector to enhance local production, if so, the details thereof;
- (g) the details of initiatives have been taken by the Government to enhance skill development and employment opportunities in the electronics manufacturing sector; and
- (h) whether the Government provide data on job creation in the electronics industry since the launch of 'Make in India' and if so, the details thereof?

## ANSWER

## वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री ( श्री णिणिन प्रसाद ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI JITIN PRASADA)

- (a) to (d) :   'Make in India' Initiative was launched on 25 th  September, 2014 to facilitate Investment, foster Innovation, build best in class Infrastructure, and make India a hub for manufacturing, design, and innovation. It is one of the unique 'Vocal for Local' Initiatives that promoted India's manufacturing domain to the world. Investment outreach is being done through Ministries, State Governments and Indian Missions abroad for enhancing International  co-

operation for promoting Domestic and Foreign Direct Investment (FDI) in the country.  Presently,  Make in  India  2.0 focuses  on  27  sectors  implemented across various Ministries/ Departments and State Governments.

India's electronics sector has experienced rapid growth, reaching USD 155 billion in FY 2023-24. Production has nearly doubled from USD 48 billion in FY  2017-18  to  USD  101  billion  in  FY2023-24,  driven  primarily  by  mobile phones, which now constitute 43% of total electronics production. India has significantly reduced its reliance on smartphone imports, now manufacturing 99% domestically. Initiatives like Make in India and Digital India, improved infrastructure and ease of doing business, supported by various incentives, have stimulated domestic manufacturing and attracted foreign investments.

Ministry  of  Electronics  and  Information  Technology  (MEiTY)  has  notified 'Electronics and Information Technology Goods (Requirement of Compulsory Registration) Order, 2012' (CRO) now renotified as 'Electronics and Information Technology Goods (Requirement of Compulsory Registration) Order, 2021' mandating Indian Safety/security Standards/Essential Requirements for notified electronic product categories. At present, 64 Product Categories and Essential Security requirements for CCTVs have been notified under the CRO. The Compulsory Registration Order has resulted in high compliance of notified electronic goods to Indian safety standards and better quality of electronic products.

The initiatives taken by the Government have led to decline in dependency on imports in several sectors. For example, the import of mobile phones has decreased from Rs 48,609 cr. in 2014-15 to Rs. 7,665 cr. in 2023-24. On the other hand, the export of mobile phones has increased from Rs. 1,566 cr. in 2014-15  to  more  than  Rs.1,28,982  cr.  in  2023-24.  As  regards  local component sourcing, it  varies  from  mobile to  mobile  and model  to  model depending on the company. However, broadly there is 18-20% Domestic value addition (DVA) in mobile manufacturing in the country.

Government has approved Semicon India programme with a total outlay of Rs  76,000  crore  for  the  development  of  semiconductor  and  display manufacturing  ecosystem  in  the  country.  This  programme  provides  fiscal support of (i)  50% of the project cost on pari-passu basis for setting up of Silicon Complementary Metal-Oxide-Semiconductor (CMOS) based Semiconductor Fabs in India, (ii) 50% of Project Cost on pari-passu basis for setting up of Display Fabs in India, (iii) 50% of the Capital Expenditure on pari-passu  basis  for  setting  up  of  Compound  Semiconductors  /  Silicon Photonics  (SiPh)  /  Sensors  (including  Micro-Electro-Mechanical  Systems) Fab/  Discrete  Semiconductor Fab and Semiconductor Assembly, Testing, Marking and Packaging (ATMP) / Outsourced Semiconductor Assembly and Test (OSAT) facilities in India. The prgramme also provides Product Design

Linked Incentive of up to 50% of the eligible expenditure subject to a ceiling of ₹15 Crore per application and also 'Deployment Linked Incentive' of 6% to 4% of net sales turnover over 5 years subject to a ceiling of ₹30 Crore per application  for  incentivising  chip  design.  Government  has  also  approved modernisation of Semi-Conductor Laboratory, Mohali to enhance efficiency and cycle time.

Under Semicon India Programme, Government has approved 5 semiconductor projects with cumulative investment of around Rs. 1 lakh 52 thousand  crore.  Further,  15  semiconductor  design  companies  have  also been approved under the Design Linked Incentive Scheme to design chips for Indian products. Additionally, 41 semiconductor design companies have been approved for access of the tools required for designing the chips (called EDA tools) which is being made available by National EDA Tool Grid setup at ChipIN Centre at C-DAC Bengaluru.

- (e) to (h): Under  the  PLI  Scheme  for  LSEM  and  IT  Hardware,  till  November,  2024, incentives  of  INR  7680  crore  and  Rs.  58.45  crore  have  been  disbursed respectively. MSMEs can also avail support under these schemes i.e. PLI, EMC, MSIPS, SPECS and Semicon.

The Government of India has approved two schemes for Skill Development in ESDM Sector viz. 'Scheme for Financial Assistance to select States/UTs for Skill Development in Electronics System Design and Manufacturing (ESDM) sector'  (Scheme-1)  and  'Skill  Development  in  ESDM  for  Digital  India' (Scheme-2) to facilitate creation of an eco-system for development of ESDM Sector in the entire country. Both these Schemes are being implemented by the Key Implementing Agencies i.e. Electronics Sector Skill Council of India (ESSCI), Telecom Sector Skill Council (TSSC), National Institute of Electronics and Information Technology (NIELIT) in coordination with Training Partners  affiliated  with  them.  Under  these  Schemes,  so  far,  4,93,926 candidates have been trained, out of which, 3,72,834 candidates have been certified.  Out  of  total  certified  candidates  1,44,051  are  women.  As  per  the industry estimates, around 2.5 mn (25 lakh) direct & indirect jobs have been created in the Electronics Sector till FY 2023-24.

*********