Lok Sabha Question No. 1756 (UNSTARRED), answered on 2025-12-10
Subject: Import of Data Centre Servers and Hardware
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: Smt. Smita Uday Wagh, Shri Balabhadra Majhi

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA UNSTARRED QUESTION NO. 1756

TO BE ANSWERED ON: 10.12.2025

## IMPORT OF DATA CENTRE SERVERS AND HARDWARE

## 1756.  SMT. SMITA UDAY WAGH:

## SHRI BALABHADRA MAJHI:

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

- (a) the total value and volume of servers imported during each of the last five financial years and the major source countries contributing to these imports;
- (b)  the  proportion  of  data-centre  hardware  requirements  currently  being  met  through  domestic manufacturing vis-à-vis imports and the manner in which this import -domestic production ratio has changed during the last five years;
- (c) the measures undertaken or proposed by the Government to promote indigenous manufacturing of high-capacity  servers,  storage  systems  and  related  components  for  data-centre  applications  under existing schemes or new initiatives;
- (d) whether the Government has carried out any assessment of the security, strategic and economic implications  arising  from  the  country's  dependence  on  imported  server  hardware  for  its  digital infrastructure; and
- (e) if so, the key findings thereof along with the details of any special incentives, tariff changes or policy interventions proposed to strengthen domestic capabilities and reduce critical import dependence?

## ANSWER

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

(a)  to  (e):  The  Government is fully conscious of the security, strategic and economic implications of importing servers and IT hardware. With India's push to democratise AI and expand compute capacity, demand for data centres has grown rapidly under a favourable policy regime.

To strengthen India's Electronics System Design and Manufacturing (ESDM) ecosystem, the Government has  launched  multiple  initiatives  such  as  ECMS,  Semicon  India  Programme,  PLI  for  Large-Scale Electronics, PLI for IT Hardware, SPECS and EMC/EMC 2.0

Data-centre infrastructure includes critical components such as servers, networking devices, storage and cooling systems. The relevant polices of government of India in this regard are:

## PLI Scheme for IT Hardware

The scheme promotes the domestic production of Servers, Laptops, Tablets, All-in-One (AIO) PCs and Ultra Small Form Factor (USFF) devices.

## Electronics Components Manufacturing Scheme (ECMS)

ECMS  covers  optical  transceivers  and  passive  components  used  in  servers,  routers  and  networking systems. The Government has received encouraging response from the industry for manufacturing these.

## DoT PLI Scheme for Telecom Equipment

PLI  scheme  for  telecom  equipment,  incentivising  the  local  production  of  routers,  switches  and  other networking gear, which form an essential part of data-centre and server infrastructure

To  further  strengthen  the  supply-chain  security  and  transparency,  CERT-In  issued  technical  BOM guidelines in July 2025 for software, hardware, AI, quantum and cryptography components.

As a result of these Government policies and initiatives, electronic production has increased six-fold from ~INR 1.9 lakh crore in FY 2014 -15 to ~ INR 11.3 lakh crore in FY 2024 -25 and exports have grown eight-fold from ~INR 0.38 lakh crore to ~ INR 3.3 lakh crore during the same period.

As a result,  global  and  domestic  firms  are  now  investing  in  India.  There  has  been  an  increase  in  the capacity and capability of domestic companies to design and manufacture servers, networking devices and equipments that go in the manufacturing these. Indian companies are now manufacturing servers for global OEMs as well as domestic brands.

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