Parliament Question: Setting up of Electronics Component Manufacturing Plants in Palakkad

GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY LOK SABHA UNSTARRED QUESTION NO. 1702

TO BE ANSWERED ON: 10.12.2025 SETTING UP OF ELECTRONICS COMPONENT MANUFACTURING PLANTS IN PALAKKAD

1702. SHRI V K SREEKANDAN:

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

(a) whether it is a fact that the Government has approved 17 new projects under the Electronics Component Manufacturing Scheme and if so, the details thereof;

(b) whether it is also a fact that this is the second tranche of announcements after seven projects were announced earlier and if so, the details thereof; and

(c) whether the Government shall advice firms to put up their plants in areas where no such facilities is existing now such as Palakkad in Kerala? ANSWER MINISTER OF STATE FOR ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI JITIN PRASADA)

(a) to (c): The policies of Government of India is driven by Hon’ble Prime Minister’s vision of Make in India and Atmanirbhar Bharat. It aims building a complete ecosystem for electronics sector.

We started our electronics journey with manufacturing finished products in the country and then started to focus on developing modules. The focus is now on developing the sub-modules/components and further raw materials, tools and machineries that go into manufacturing it.

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 goods (₹) ~1.9 Lakh Cr ~11.3 Lakh Cr Increased 6 times Export of electronics goods (₹) ~0.38 Lakh Cr ~3.3 Lakh Cr Increased 8 times Production of mobile phones (₹) ~0.18 Lakh Cr ~5.5 Lakh Cr Increased 28 times Export of mobile phones (₹) ~0.01 Lakh Cr ~ 2 Lakh Cr Increased 127 timesThis transformation was made possible by the Government's electronics manufacturing strategy. Many initiatives have been undertaken in last 11 years. These include:

• Production linked incentives (PLI) for large scale electronics manufacturing • Production linked incentives (PLI) for IT hardware • Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) • Electronics Manufacturing Clusters (EMC and EMC 2.0) Scheme • Public Procurement (Preference to Make in India) Order 2017 to prioritize domestically manufactured products in public procurement • Reforms in taxation including rationalization of tariff structure, exemption on basic custom duty on capital goods, etc.

• Allowing 100% FDI in electronics manufacturing, subject to applicable laws / regulations Electronics Components Manufacturing Scheme (ECMS).

To further deepen electronics manufacturing, Government launched ECMS. It promotes manufacturing of components such as resistors, capacitors, inductors, printed circuit boards, sub-assemblies, electro- mechanicals, etc.

The scheme has received unprecedented response from the industry sor far. Applications for projects having investment value of INR 1.15 lakh crores against the target investment of INR 59,350 crores have been received.

The 2nd tranche of approvals is in continuation of seven applications approved earlier. Government has approved 24 applications so far under this scheme, out of which 17 applications have been approved in 2nd tranche.

These 24 applications have projected investment of INR 12,704 crores, production of INR 109,517 crores and generate 17,003 direct employments.

Government had invited applications from industry for participating in the ECMS scheme which is pan India in nature.

Location of the manufacturing units is decided by the industry, keeping in view the supporting policy and other ease of doing business measures implemented by the State Government. ******