Minister of State for Electronics and IT, Rajeev Chandrasekhar has provided clear statistics on electronics chip consumption that the chips worth Rs 1.1 lakh crore were consumed in India in 2020 as per industry estimates.
This response was given via a written reply to Rajya Sabha on Feb 11, 2022.
“As per the industry estimate, the semiconductor consumption in India was around Rs 1.1 lakh crore in 2020 which is being met through imports due to absence of commercial semiconductor fabs in India,” the minister said.
The minister said that besides Rs 76,000 crore semicon program, the government has also approved the modernization of Semiconductor Laboratory, Mohali as a brownfield Fab.
The Minister said that due to initiatives of the government and efforts of the industry, the domestic production of electronic goods has increased to Rs 5,54,461 crore (USD 74.7 billion) in 2020-21 from Rs 2,43,263 crore (USD 37 billion) in 2015-16 growing at a Compound Annual Growth Rate (CAGR) of 17.9 percent.
Chandrasekhar also shared that the import of electronic goods increased to Rs 87,169 crore in 2019-20 from Rs 65,779 crore in 2018-19 but reduced to Rs 82,645 crore in 2020-21.
“The export of electronic goods has increased by 25 percent from 2018-19 to 2019-20 and decreased slightly by 5 percent from 2019-20 to 2020-21.
“However, in this year, for the corresponding period (April to December), the export of electronic goods has already surpassed the exports of last year (Rs. 55,188 crores) and stands at Rs 81,376 crore,” Chandrasekhar said.
“Many policies of the Government including the flagship Production Linked Incentive (PLI) Schemes, Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors, Modified Electronics Manufacturing Cluster (EMC 2.0) Scheme are major steps towards making India „AtmaNirbhar‟ in electronics manufacturing” Chandrashekhar added.
“20 applications have been received and approved under SPECS with a total project outlay of Rs.6,747 crore and committed incentives of Rs 1,236 crore. The total employment generation potential of the approved applications is 28,845”.
The Union Government, through the Ministry of Electronics and IT (MEITY), had recently unveiled a roadmap to achieve $300 billion domestic production of electronics by the year 2026.
Given the government’s official estimate that $74.7 billion of domestic electronic production requires imports worth $14.5 billion of semiconductors, a $300 billion of domestic electronic production is likely to need upwards of $58 billion semiconductors by 2026.