Lok Sabha Question No. 1567 (UNSTARRED), answered on 2024-12-04
Subject: Subsidies for Affordability of Smartphones in Rural Areas
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: Shri Kuldeep Indora

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA

## UNSTARRED QUESTION NO. 1567

TO BE ANSWERED ON 04.12.2024

## SUBSIDIES FOR AFFORDABILITY OF SMARTPHONES IN RURAL AREAS

## 1567.  SHRI KULDEEP INDORA:

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

- (a) whether the Government has taken any new measures to improve digital literacy in rural areas;
- (b)  whether  the  Government  is  planning  to  introduce  subsidies  or  incentives  to  make smartphones and mobile data more affordable for people in rural areas; and
- (c) if so, the details thereof and if not, the reasons therefor?

## ANSWER

## MINISTER OF STATE FOR ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI JITIN PRASADA)

(a)  to  (c):    The  Pradhan  Mantri  Gramin  Digital  Saksharta  Abhiyan  (PMGDISHA)  was launched by Government of India to promote digital literacy in rural India. The aim was to reach 6 crore rural households (one person per household) nationwide.

The National Sample Survey Office (NSSO) conducted the 'Comprehensive Annual Modular Survey'  (CAMS)  in  its  79 th round  (July,  2022  to  June,  2023)  and  the  data  in  their  report indicates  a  significant  positive  trend  in  digital  literacy  across  both  rural  and  urban  areas  of India.  From  the  said  report  and  given  the  significant  rise  in  smart-phone  usage,  internet penetration,  and  digital  engagement  in  rural  areas,  the  objectives  of  the  scheme  was successfully  achieved.  The  PMGDISHA  scheme  has  ended,  as  against  6  crore,  6.39  crore individuals were trained across the country as on March 31, 2024.

MeitY, Government of India has extended fiscal incentive through various schemes including Production  Linked  Incentive  Scheme  (PLI)  for  Large  Scale  Electronics  Manufacturing (LSEM). The Scheme offers a production linked incentive to boost domestic manufacturing and  attract  large  investments  in  mobile  phone  manufacturing  and  specified  electronic components, including Assembly, Testing, Marking and Packaging (ATMP) units.

Driven by the PLI Scheme for LSEM, the mobile phone production has grown significantly in the last one decade. The production of mobile phones has grown from INR 18,900 crore in FY  2014-15  to  INR  4,20,000  crore  in  FY  2023-24  (industry  estimates).  As  per  industry estimates, 99.2% of the domestic demand is being met by domestic production.

Due to the above said initiatives  by  the  Government,  India  has  emerged  as  the  2 nd largest manufacturer of mobile phones in the world in volume terms. Export of mobile phones has grown from INR 1,566 crore in FY 2014-15 to INR 1,20,000 crore in FY 2023-24, as per industry estimates.

Telecom Regulatory Authority of India (TRAI) report dated 21.11.2024 indicates that there are around 525.60 million wireless subscribers in the Rural areas and 628.12 million wireless subscribers  in  the  Urban  areas.  The  data  costs  have  come  down  significantly.  This  is  an outcome of reforms and innovation in the telecom sector.

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