Lok Sabha Question No. 2891 (UNSTARRED), answered on 2023-12-20
Subject: Production of Smartphones
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: Ramapati Ram Tripathi

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK  SABHA

## UNSTARRED QUESTION NO. 2891

TO BE ANSWERED ON 20.12.2023

## PRODUCTION OF SMARTPHONES

## 2891 DR. RAMAPATI RAM TRIPATHI:

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

- (a) the details of the current growth rate of the production of smartphones in the country;
- (b) the details of the duration of PLI scheme for the production of smartphones;
- (c)  whether  the  government  plans  to  extend  or  revise  the  PLI  scheme  based  on  the performance;
- (d) if so, the details thereof and if not, the reasons therefor;
- (e)  whether  the  Government  has  taken  any  measures  to  expand  and  enhance  network connectivity in rural areas to facilitate usage of smartphones; and
- (f) if so, the details thereof 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) and (d): 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.

(e) and (f): 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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