Parliament Question: Subsidies under Electronics Manufacturing Schemes

GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY LOK SABHA UNSTARRED QUESTION NO. 6149 TO BE ANSWERED ON 01.04.2026 SUBSIDIES UNDER ELECTRONICS MANUFACTURING SCHEMES 6149. SHRI SACHITHANANTHAM R: Will the Minister of ELECTRONICS AND INFORMATION TECHNOLOGY be pleased to state: (a) the details of subsidies, incentives and fiscal support provided under electronics manufacturing schemes to multinational corporations such as Apple, Samsung Electronics and their suppliers; and (b) the extent of technology transfer and domestic value addition achieved through these schemes? ANSWER MINISTER OF STATE FOR ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI JITIN PRASADA) (a) and (b): Driven by Hon’ble Prime Minister’s vision of Make in India and Atmanirbhar Bharat, the Government is developing complete manufacturing ecosystem for electronics goods. Electronics manufacturing in India has expanded significantly in the last 11 years. It can be seen from the following statistics: Table 1: # 2014-15 2024-25 Remarks Production of electronics 1.9 Lakh Cr ~ 12Lakh Cr Increased 5 times goods (₹) Export of electronics 38 thousand Cr ~ 3.3 Lakh Cr Increased 8 times goods (₹) Mobile manufacturing 2 300 Increased 150 times units Production of mobile 18 thousand Cr 5.45 Lakh Cr Increased 28 times phones (₹) Export of mobile phones 1,500 Cr 2 Lakh Cr Increased 127 times (₹) Mobile phone imported 75% of the total 0.02% of the (units) demand total demand From being an importer of mobile phones back in 2014, India has now become a net exporter. We have more than 300 mobile manufacturing units operational in the country. Smartphones have emerged as India’s top exported commodity in CY 2025. The top 3 commodities exported from India in CY 2025 are mentioned below:Table 2: # HS Code Item Export value for CY 2025 (₹. Cr.) 1 85171300 Smartphones 262,452 2 27101944 Automotive diesel fuel, not containing 1,42,227 biodiesel, conforming to standard IS 1460 3 71023910 Diamond (other than industrial 1,08,652 diamond) cut or otherwise worked but not mounted or set Source: DGCIS This growth has been possible due to various measures taken by the Government in the last 11 years to promote domestic production of electronic goods, semiconductors, components and hardware. Some of the key electronics manufacturing initiatives include: PLI Scheme for Large Scale Electronics Manufacturing Government of India launched the Production Linked Incentive (PLI) Scheme for Large Scale Electronics Manufacturing (LSEM) in 2020. It was aimed at boosting the domestic manufacturing of mobile phones in the country. 32 beneficiary companies have been approved under the scheme. An incentive of Rs. 15,473 Cr. has been disbursed under the scheme till date. The details of the targets and achievement under the PLI Scheme for LSEM are tabulated below: Category Target Achievement till Feb’ 2026 Investment (₹ Cr) 7,000 17,519 (250% of the target) Production (₹ Cr) 8,12,550 11,01,813 (136% of the target) Exports (₹ Cr) 4,87,530 6,20,974 (127% of the target) Employment 2,00,000 1,85,175 (Direct Jobs) (92% of the target) As a result, India has emerged as a 2nd largest mobile manufacturer in the world. The mobile phone production in the country has more than doubled from Rs. 2.14 Lakh crores in FY 2019-20 to Rs. 5.5 Lakh crores in FY 2024-25. The mobile phone exports have increased ~8 fold from Rs. 0.27 Lakh crores in FY 2019-20 to Rs. 2 Lakh crores in FY 2024-25. From being an importer of mobile phones back in 2014, India has now become a net exporter. Smartphones have become India’s top exported commodity in CY 2025. PLI Scheme for IT Hardware Government of India also launched the PLI Scheme 2.0 for IT Hardware in 2023 to create a robust domestic manufacturing ecosystem for IT hardware (laptops, tablets, servers, etc.).Under the scheme, a total cumulative production of Rs. 18,863.1 crore, total cumulative investment of Rs. 872.16 crore and total cumulative employment of 5,039 (direct jobs) have been achieved till February, 2026. Driven by PLI, and supported by the growth of domestic component manufacturing, laptops, servers and desktops are now being manufactured in India. The quality of these products is at par with global standards, with Indian manufacturing facilities emerging among the best. Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) was notified on 1st April 2020. It aimed at offsetting the disability for domestic manufacturing of electronic components and semiconductors. The scheme provided a financial incentive of 25% on the capital expenditure for the identified list of electronic goods that comprises the downstream value chain. A total of 58 applications with a total project cost of INR 22,080.78 Cr have been approved under the scheme. Till February 2026, SPECS has led to a total cumulative investment of Rs. 18,609 crore and total cumulative employment of 64,443. Semicon India Programme To promote the development of semiconductors manufacturing ecosystem in India, Government launched Semicon India Programme in January 2022. It aims at developing a complete ecosystem, ranging from design, fabrication, assembly, testing, packaging and module manufacturing. In a short span of four years, the Government has approved 10 projects with investment commitments of about ₹1.6 lakh crore. Commercial production from two plants (Micron and Kaynes) has commenced with 2 more plant to start commercial production this year. The details of the approved Semiconductor manufacturing units are placed at Annexure I. Many approved companies under the Programme have entered into technology partnership with global semiconductor companies from Taiwan, Japan, Thailand, UK, Korea, US and Malaysia etc. Technology transfer arrangements with these countries encompass CMOS process nodes (28nm, 40nm, 55nm, 90nm, and 110nm), silicon carbide (SiC) technologies, and both advanced and legacy semiconductor packaging capabilities. Electronics Manufacturing Clusters Schemes (EMC and EMC 2.0 Schemes) Government also launched EMC scheme to provide world class infrastructure, logistic and plug and play facility for electronics manufacturing, with industrial ready land, utilities, and common facilities. Under these schemes, total 30 Greenfield Electronics Manufacturing Clusters (EMCs) and 5 common facility centers (CFCs) have been established across 18 States across the country. As of now, these clusters have mobilized investments of more than Rs.30,000 crore and generated employment around 90,000 jobs. Electronics Components Manufacturing Scheme (ECMS) Government launched ECMS to further deepen the supply chain ecosystem and develop robust electronics component ecosystem in the country.It aims to attract investments across 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 scheme envisaged an investment of Rs 59,350 crore from the domestic/global manufacturers in India and direct employment of 91,600 during the scheme tenure. The scheme has received an unprecedented response from the industry so far. 260 applications have been received till date, which project an anticipated investment commitment of ~Rs 1.18 lakh crores. As on date, 75 applications have been approved across 12 states under the ECMS scheme. This is expected to attract an investment of Rs 61,671 crores and generate 65,040 jobs. Many approved companies under ECMS have entered into technology partnership/Joint Venture (JV) with global electronics manufacturing companies from Korea, Taiwan, Japan, China, Singapore and Malaysia etc The domestic value addition in electronics manufacturing is progressively increasing, with greater localisation of components and sub-assemblies. *******Annexure-I Details of approved semiconductor manufacturing projects: 1. Micron Technology Inc. is establishing semiconductor manufacturing facility in Gujarat with an investment of Rs.22,516 crore. Micron’s facility in India will enable assembly and test manufacturing for both DRAM and NAND products and address demand from domestic and international markets. The production capacity is around 14 million units per week. 2. Tata Electronics Private Limited (TEPL) is establishing semiconductor manufacturing facility in Gujarat with an investment of Rs. 91,526 crore. The fab facility will be set up in technology partnership with PSMC, Taiwan. The production capacity of the project would be around 50,000 wafer starts per month (WSPM). 3. Tata Electronics Private Limited (TEPL) is establishing semiconductor manufacturing facility in Assam with an investment of Rs.27,120 crores. The facility will use indigenous semiconductor packaging technologies with a production capacity of 48 million units per day. 4. CG Power and Industrial Solutions Limited is establishing semiconductor manufacturing facility in Gujarat with an investment of Rs. 7,584 crore. The facility will be set up as a joint venture partnership with Renesas Electronics America Inc., USA, and STARS Microelectronic, Thailand. The Technology would be provided for this facility by Renesas Electronics Corporation, Japan and STARS Microelectronic, Thailand. The production capacity would be around 15.07 million units per day. 5. Kaynes Technology India Limited (KTIL) is establishing semiconductor manufacturing facility in Gujarat with an investment of Rs. 3,307 crores for Wire bond Interconnect, Substrate Based Packages. The Technology would be provided by ISO Technology Sdn. Bhd. and AOI Electronics Co. Ltd. (AOI). The facility will have the capacity to produce more than 6.33 million chips per day. 6. Vama Sundari Investments (Delhi) Private Limited (VSIPL) is establishing semiconductor manufacturing facility in Uttar Pradesh with an investment of Rs 3,706 crores for display driver ICs (DDIC) using Gold (Au) Bump technology along with chip probing facilities and die processing services. The Technology would be provided by Hon Hai, Taiwan. The facility will be set up as a joint venture partnership between VSIPL and Foxconn, India. The production capacity would be around 20K wafers per month/36 million chips per month. 7. 3D Glass Solutions Inc. (3DGS) is establishing semiconductor manufacturing facility in Odisha with an investment of Rs. 1,943 crores. The plant will handle the assembly of packaged products such as Flip Chip Ball Grid Array (FCBGA) assembly, Radio Frequency System in Package (RF SiP), Antenna in Package System in Package (AiP SiP), glass interposers with passives and silicon bridges and 3D Heterogeneous Integration (3DHI) modules. The Proposed installed capacity for glass panel substrate production, assembly and 3DHI is around 5800 panels per month, 4.20 million units per month, and 1100 units per months respectively. 8. SiCSem Private Limited is establishing semiconductor manufacturing facility in Odisha with an investment of Rs. 2,066 crores. The facility will be set up in technology partnership with Clas-SiC Wafer Fab Ltd. for SiC fab and Continental Device India Pvt. Ltd. for packaging. The production capacity is 5,000 wafers/month, and the packaging capacity is 8 million units/month. 9. Continental Device India Private Limited (CDIL) is expanding its semiconductor manufacturing facility in Punjab, with an investment of Rs. 117 crores. The facility will manufacture high-power discrete semiconductor devices such as MOSFETs, IGBTs, Schottky Bypass Diodes, and transistors, both in Silicon and Silicon Carbide. The production capacity will be around 158.38 million units/annum. 10. Advanced System in Package Technologies Private Limited (ASIP) is establishing semiconductor manufacturing facility in Andhra Pradesh, with an investment of Rs. 480 crores. The facility will be set up in technology partnership with APACT Co. Ltd, South Korea. The production capacity of the facility would be around 96 million units/annum. ********