**Executive Summary**
The document is an answer provided by the Minister of State for Electronics and Information Technology to the Lok Sabha concerning the building of a resilient and diversified electronics supply chain. The response outlines governmental strategies and initiatives to reduce import dependence and boost domestic manufacturing in the electronics sector, including semiconductors. It references various schemes and incentives and details the growth in electronic manufacturing over the last decade.
**Key Points / Main Content**
* **Government Aim and Strategy:**
* The government aims to develop a complete manufacturing ecosystem for the electronics sector, driven by the "Make in India" and "Atmanirbhar Bharat" visions.
* The strategy progresses from finished products to sub-assemblies, components, machinery, and tools.
* **Semiconductor Manufacturing:**
* The Semicon India Programme was launched to build semiconductor manufacturing capability across the value chain.
* Ten units have been approved with an investment of Rs 1.6 Lakh Crore for silicon fab, Silicon Carbide fab, advanced packaging, memory packaging, etc.
* 24 projects have been approved for financial support for chip design under the Design Linked Incentive Scheme.
* **Incentive and Cluster Schemes:**
* Production Linked Incentives (PLI) were launched for large-scale electronics manufacturing in 2020, for promoting the manufacturing of electronic components and semiconductors (SPECS) in 2020, and for IT hardware in 2023.
* Electronics Manufacturing Clusters (EMC and EMC 2.0) Scheme aims to provide plug-and-play manufacturing infrastructure.
* **Electronics Component Manufacturing Scheme (ECMS):**
* Launched to reduce the import of electronic components such as PCBs, passive and electro-mechanical components, sub-assemblies, camera modules, and capital goods.
* The outlay has been increased from Rs. 22,900 Cr to Rs. 40,000 Cr. in Budget 2026-27.
* Received 249 proposals with a total investment commitment of Rs. 1.15 lakh crore.
* **Growth in Electronics Manufacturing:**
* Significant expansion of electronics manufacturing in India in the last 11 years.
* Production of electronics goods increased 6 times from 2014-15 to 2024-25.
* Export of electronics goods increased 8 times from 2014-15 to 2024-25.
* Production of mobile phones increased 28 times from 2014-15 to 2024-25.
* Export of mobile phones increased 127 times from 2014-15 to 2024-25.
* **General:**
* The location of the manufacturing units is decided by the industry.
* Government of India initiatives are pan India in nature.
**Impact Analysis**
**Stakeholder:** Domestic Electronics Manufacturers and MSMEs
**Impact:** Benefit from reduced import dependence, increased domestic manufacturing capabilities, and access to government incentives.
**Action Required:** Leverage available schemes and incentives to expand manufacturing, enhance production efficiency, and integrate into the domestic supply chain.
**Stakeholder:** Consumer Electronics Units
**Impact:** Access to domestically manufactured components and reduced reliance on imports.
**Action Required:** Explore opportunities to source components from domestic manufacturers, potentially reducing costs and improving supply chain resilience.
**Stakeholder:** Investors
**Impact:** Encouragement to invest in the electronics and semiconductor manufacturing sectors due to favorable government policies and incentives.
**Action Required:** Evaluate investment opportunities in the sector, considering the government's focus on domestic manufacturing and supply chain resilience.
**Stakeholder:** Semiconductor Chip Designers
**Impact:** Financial Support, opportunity for growth.
**Action Required:** Apply for financial support as part of Design Linked Incentive Scheme to design semiconductor chips for critical sectors.
Key Entities Referenced
Production Linked Incentive (PLI): Incentive scheme for large-scale electronics manufacturing and IT hardware.
Semicon India Programme: A program to build semiconductor manufacturing capability across the entire value chain.
Electronics Manufacturing Clusters (EMC and EMC 2.0) Scheme: Scheme for providing plug-and-play manufacturing infrastructure.
Electronics Components Manufacturing Scheme (ECMS): Scheme to reduce import of electronic components.
Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS): Scheme to promote manufacturing of electronic components and semiconductors.
GOVERNMENT OF INDIA
MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY
LOK SABHA
UNSTARRED QUESTION NO. 889
TO BE ANSWERED ON: 04.02.2026
BUILDING A RESILIENT AND DIVERSIFIED ELECTRONICS SUPPLY CHAIN
889. SHRI MOHITE PATIL DHAIRYASHEEL RAJSINH:
SMT. SUPRIYA SULE:
Will the Minister of ELECTRONICS AND INFORMATION TECHNOLOGY be pleased to state:
(a) whether the Government is aware that the country continues to remain heavily dependent on imports
of high-end electronic components, semi-conductors, PCBs and critical raw materials from countries
such as China and Taiwan, exposing the domestic electronics sector to supply-chain disruptions,
component shortages and export curbs on rare-earth minerals;
(b) whether the Government has conducted any risk and vulnerability assessment of the impact of such
import dependence on electronics manufacturing clusters, start-ups, Micro Small and Medium
Enterprises (MSMEs) and consumer electronics units operating in and around Mumbai and if so, the
details thereof; and
(c) the specific steps being taken by the Government to build a resilient and diversified electronics
supply chain including domestic manufacturing of critical components, semi-conductor and materials
processing capabilities and value-chain investments in Maharashtra particularly in the Mumbai and
Pune Region and if so, the details thereof?
ANSWER
MINISTER OF STATE FOR ELECTRONICS AND INFORMATION TECHNOLOGY
(SHRI JITIN PRASADA)
(a) to (c): Driven by Hon’ble Prime Minister’s vision of Make in India and Atmanirbhar Bharat, India
aims to develop a complete manufacturing ecosystem for the electronics sector. Government’s strategy
for electronic manufacturing journey starts from finished products to sub-assemblies and then to
components, machinery and tools. For semiconductor manufacturing, the Government launched
Semicon India Programme to build manufacturing capability across all the value chain of
semiconductors.
For manufacturing of finished goods, the Government launched Production linked incentives (PLI) for
large scale electronics manufacturing in 2020, Scheme for Promotion of Manufacturing of Electronic
Components and Semiconductors (SPECS) in 2020 and Production linked incentives (PLI) for IT
hardware in 2023. Further, government also launched the Electronics Manufacturing Clusters (EMC
and EMC 2.0) Scheme for providing plug-and-play manufacturing infrastructure with ready land,
utilities, and common facilities, reducing setup time, and enhancing production efficiency.Electronics manufacturing in India has expanded significantly in the last 11 years. Value addition by
the electronics manufacturing units in India has also increased considerably in recent years. It can be
seen from the following statistics:
# 2014-15 2024-25 Remarks
Production of electronics ~1.9 Lakh Cr ~11.3 Lakh Cr Increased 6 times
goods (Rs.)
Export of electronics ~0.38 Lakh Cr ~3.3 Lakh Cr Increased 8 times
goods (Rs.)
Production of mobile ~0.18 Lakh Cr ~5.5 Lakh Cr Increased 28 times
phones (Rs.)
Export of mobile phones ~0.01 Lakh Cr ~ 2 Lakh Cr Increased 127 times
(Rs.)
Manufacturing of electronic products involves domestic sourcing as well as imports of various
components from different countries depending on competitive advantages. However, the Government
periodically reviews the status of electronics manufacturing in the country and brings in necessary
policy to build domestic electronics manufacturing capacity and capability in this sector, to strengthen
supply chain resilience and reduce import dependence.
Government launched the Electronics Components Manufacturing Scheme (ECMS) to reduce import
of components. The scheme aims to develop manufacturing of key components such as Printed Circuit
Boards (PCBs), passive components, electro-mechanical components, sub-assemblies, camera
modules, optical transceivers, and capital goods required for electronics manufacturing. The ECMS has
received unprecedented response from the industry so far. Against the initial investment target of Rs.
59,350 crore, industry has submitted 249 proposals with total investment commitment of Rs. 1.15 lakh
crore. Encouraged by the response, ECMS outlay has also been increased from Rs. 22,900 Cr to Rs.
Rs. 40,000 Cr. in Budget 2026-27.
Similarly, to develop semiconductor manufacturing Government of India launched the Semicon India
Program for development of semiconductors in 2022:
• Government is focused on developing the entire value chain of semiconductors which
includes - designing, fabrication, assembly, testing and packaging.
• So far, ten (10) units have been approved with cumulative investment of Rs 1.6 Lakh
Crore. These units include silicon fab, Silicon Carbide fab, advanced packaging,
memory packaging, etc. These would cater to chip requirements of sectors such as
consumer appliances, industrial electronics, automobiles, telecommunications,
aerospace, and power electronics etc.
• For chip design, so far, 24 projects have been approved for financial support as part of
Design Linked Incentive Scheme to design semiconductor chips for critical sectors suchas video surveillance, drone detection, energy metering, microprocessors, satellite
communications, broadband technologies, and SoC for the Internet of Things (IoT).
The Government of India initiatives are pan India in nature. Location of the manufacturing units is
decided by the industry.
******