Lok Sabha Question No. 116 (UNSTARRED), answered on 2016-02-24
Subject: Mobile Production
Ministry: COMMUNICATIONS AND INFORMATION TECHNOLOGY
Asked by: ANANDRAO  ADSUL, DHARMENDRA YADAV, Shrirang Appa Barne, SHIVAJI ADHALRAO PATIL

## GOVERNMENT OF INDIA MINISTRY OF COMMUNICATIONS AND INFORMATION TECHNOLOGY

## DEPARTMENT OF TELECOMMUNICATIONS LOK SABHA

## UNSTARRED QUESTION NO.116 TO BE ANSWERED ON 24 th  FEBRUARY, 2016

## MOBILE PRODUCTION

116.   SHRI ANANDRAO ADSUL:

SHRI DHARMENDRA YADAV:

SHRI SHRIRANG APPA BARNE:

SHRI ADHALRAO PATIL SHIVAJIRAO:

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

- (a) whether in terms of value, mobile phone production in the country has increased by 95% in the ongoing financial year as compared to the previous fiscal;
- (b) if so, the details thereof;
- (c) whether mobile phone production in India has increased with leading companies setting up their manufacturing base in the country;
- (d) if so, the details thereof; and
- (e) the extent to which new investment has been made in mobile phone production and new jobs created as a result thereof and the steps taken to attract more world leading companies to set up their manufacturing unit in India?

## ANSWER

## THE MINISTER OF COMMUNICATIONS AND INFORMATION TECHNOLOGY (SHRI RAVI SHANKAR PRASAD)

- (a) to (d) As  per  Indian  Cellular  Association,  the  production  of  mobile  phones  in India  during  current  financial  year  is  expected  to  cross  ₹  40,000  Crores  (value) compared to the production of ₹ 18,900 Crores (value) during 2014-15.
- (e) The  total  investments  made  by  companies  during  the  past  7-8  months  are estimated to be in the range of ₹ 250 Crs - 300 Crs which is likely to increase to ₹ 600650  Crores  by  the  end  of  2015-16.  More  than  30,000  new  jobs  have  already  been generated in this industry during the past 7-8 months and an additional 8000 - 10000 new jobs are expected to be generated by the end of current financial year. Following steps have been taken by the Government to attract more world leading companies to set up their manufacturing units in India:
- (1)  Modified Special Incentive Package Scheme  (M-SIPS) provides financial incentives  to  offset  disability  and  attract  investments  in  the  manufacturing  of electronics products (including telecom). The scheme is available for both new projects and expansion projects. The scheme provides subsidy for investments in capital expenditure - 20% for investments in SEZs and 25% in non-SEZs.
- (2)  Excise Duty structure for mobile handsets has been changed from 1% without CENVAT  credit  or  6%  with  CENVAT  credit  to  1%  without  CENVAT  credit  or 12.5%  with  CENVAT  credit.  The  differential  duty  for  the  mobile  handset manufacturing  is  being  termed  as  a  game  changer  by  the  industry  and consequent to this various Mobile phone manufacturing companies like Foxconn, Xiomi,  Micromax,  Celkon,  and  Karbonn  have  committed  to  mobile  phone manufacturing in the country.
- (3)  Full  exemption of all goods, except populated printed circuit boards, for use in manufacture  of  ITA  bound  items  from  Special  Additional  Duty  (SAD)  and reduction in SAD on imports of certain other inputs and raw materials is available now.

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