Here’s what grew and what not

Electronics production in the country grew at a compound annual growth rate of 17 per cent in the last 5 years and reached its all-time high at Rs 5,33,670 crore in 2020-21, Parliament was informed on Friday. According to data shared by IT and Communications Minister Ashwini Vaishnaw, electronics production in the country has grown close to threefold from Rs 1,90,366 crore worth of manufacturing in 2014-15.

“Electronics manufacturing has grown rapidly in the country with a CAGR of around 17 per cent during the last 5 years,” Vaishnaw said in a written reply to the Rajya Sabha.

He said many policies of the government including the flagship Production Linked Incentive (PLI) scheme, Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors(SPECS), Modified Electronics Manufacturing Cluster (EMC 2.0) are major steps towards making India ‘atmanirbhar’ in electronics manufacturing.

“As a result, domestic electronic production has increased from Rs 1,90,366 crore in 2014-15 to Rs 5,33,670 crore in 2020-21,” the minister said.

The growth in production remained almost flat in 2020-21 compared to production worth Rs 5,33,550 crore in 2019-20.

The import of electronics chips fell 5.7 per cent to Rs 67,496 crore in 2020-21 from Rs 71,581 crore in 2019-20 and export increased by 17 per cent to Rs 2,064 crore from Rs 1,752 crore in 2019-20.

At present, semiconductor wafer fabrication facilities for strategic requirements are available at Semi-Conductor Laboratory (SCL), Gallium Arsenide Enabling Technology Centre (GAETEC), Hyderabad and Society for Integrated Circuit Technology and Applied Research (SITAR), Bengaluru.

To a question on steps taken by government to boost manufacturing of semiconductors in India amid a global shortage, Vaishnaw said a project for “establishment of Gallium Nitride (GaN) Ecosystem Enabling Center and Incubator for High Power and High Frequency Electronics” is being implemented by Indian Institute of Science , Bengaluru at Centre for Nano Science and Engineering (CeNSE) with the project cost of Rs 298.66 crore.

He said the government has approved an application for setting up of Assembly, Testing, Marking and Packaging (ATMP) of NAND Flash memory under the PLI scheme for large scale electronics manufacturing.

“An application for discrete semiconductor devices, including transistors, diodes, thyristors, etc. and System in Package (SIP) has been approved under the PLI scheme for large scale electronics manufacturing,” Vaishnaw said.

He said SPECS provides financial incentive of 25 per cent on capital expenditure for the electronic components, semiconductor / display fabrication units, ATMP units, specialized sub-assemblies and capital goods for manufacture of aforesaid goods.

“PLI for ‘Large Scale Electronics Manufacturing’ offered a production linked incentive to boost domestic manufacturing and attract large investments in mobile phone manufacturing and specified electronic components, including ATMP units,” Vaishnaw said.

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