Domestic electronics production hits record high of Rs 8.25 lakh crore

Indigenous production of electronic goods in the country more than doubled to Rs 8.25 lakh crore in 2022-23 from Rs 3.88 lakh crore in 2017-18, Parliament was informed on Wednesday. Minister of State for Electronics and IT Rajeev Chandrasekhar in a written reply to the Lok Sabha said that semiconductors worth Rs 1,29,703 crore were imported in 2022-23. ”As a result of several initiatives taken by the Government and efforts of the industry, the domestic production of electronic goods has increased substantially from Rs 3.88 lakh crore (USD 60 Billion) in 2017-18 to Rs 8.25 lakh crore in 2022-23 (USD 101.9 billion) at a Compound Annual Growth Rate (CAGR) of 16.28 per cent,” the minister said.

The government is focused on its objective of catalysing the overall semiconductor ecosystem to further expand India’s already rapidly expanding electronics manufacturing and innovation ecosystem, he added. The minister said that semiconductors form a major part of all electronic products therefore as a result of growth in the electronics manufacturing sector, the semiconductor market in India has also witnessed proportionate growth over the last few years.

”As per the Directorate General of Commercial Intelligence & Statistics (DGCIS) portal, semiconductor chips worth Rs 1,29,703 crore were imported in FY 2022-23 due to the absence of commercial Fabs in India,” Chandrasekhar said. The government has approved the Semicon India programme with a total outlay of Rs 76,000 crore for the development of the semiconductor and display manufacturing ecosystem in the country. The programme aims to provide financial support to companies investing in semiconductors, display manufacturing and design ecosystems.

”Government has also approved modernisation of SemiConductor Laboratory, Mohali, as a brownfield Fab. Under the Semicon India Programme, the proposal of Micron Technology Inc has been approved for setting up a semiconductor ATMP unit in India with a capital investment of Rs 22,516 crore (USD 2.75 billion),” Chandrasekhar said. PTI