Incremental Investment of Rs 8,803 Crore Made Under Scheme to Promote Semiconductor Manufacturing, Jitin Prasada Tells Parliament

An incremental investment of Rs 8,803.14 crore has been made under the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) as of June 30, 2024, according to the Minister of State for Electronics and Information Technology, Jitin Prasada.

The significant investment has catalysed the production of electronic components valued at Rs 18,083.55 crore, highlighting the government’s efforts to scale up electronics production in India.

In response to questions in Parliament, the minister outlined several key programmes designed to develop a robust components ecosystem and boost domestic manufacturing. These include:

SPECS: Launched on April 1, 2020, and open for applications until March 31, 2024, SPECS provides a 25 per cent financial incentive on capital expenditure for a range of electronic components, including e-waste recycling, micro/nano-electronic components, solar photovoltaic (SPV) polysilicon, SPV wafers and solar cells, specialised sub-assemblies, and capital goods. As of June 30, this scheme has attracted an incremental investment of Rs 8,803.14 crore, leading to a substantial production output valued at Rs 18,083.55 crore.

Production Linked Incentive (PLI) Scheme for Large Scale Electronics Manufacturing: Also launched on April 1, 2020, the PLI scheme aims to enhance domestic manufacturing and attract investment in the mobile phone value chain, including electronic components and semiconductor packaging. The scheme offers an incentive of 3-6 per cent on incremental sales (over the base year) of goods manufactured in India, focusing on mobile phones and specified electronic components. As of June 30, 2024, the PLI scheme has resulted in an incremental investment of Rs 8,390 crore, generating production worth Rs 5,14,960 crore.

Additionally, Prasada addressed questions regarding the impact of high-tariff rates on the export market for electronics. While he did not provide specific details of any impact assessment, he mentioned that the rationalisation of the tariff structure is an ongoing process, indicating government’s recognition of the need to adjust tariff rates to remain competitive in the global mobile phone production market.