Parliament Question: Promotion of Electronics Manufacturing in Rayalaseema

GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY LOK SABHA UNSTARRED QUESTION NO. 2833

TO BE ANSWERED ON: 05.08.2026 PROMOTION OF ELECTRONICS MANUFACTURING IN RAYALASEEMA

2833. SHRI G LAKSHMINARAYANA:

Will the Minister of ELECTRONICS AND INFORMATION TECHNOLOGY be pleased to

state:

(a) the steps taken by the Government to promote electronics manufacturing in the Rayalaseema region of Andhra Pradesh including incentives and support provided under various Central Government schemes;

(b) the number of electronics manufacturing units proposed, approved and operational in the Rayalaseema region since the year 2019, district-wise indicating the nature of projects and the employment generated;

(c) the details of investments committed and realised for electronics manufacturing in the Rayalaseema region along with the Central assistance sanctioned and released, since the year 2019;

(d) the steps taken by the Government in collaboration with the State Government of Andhra Pradesh to develop electronics manufacturing clusters, common infrastructure, skilling facilities and supply chain ecosystems in the Rayalaseema region; and

(e) whether the Government proposes to establish new electronics manufacturing clusters or extend additional incentives to accelerate electronics manufacturing in the Rayalaseema region and if so, the details thereof? ANSWER MINISTER OF STATE FOR ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI JITIN PRASADA)

(a) to (e): Driven by Hon’ble Prime Minister’s vision of Make in India and Atmanirbhar Bharat, Government of India has taken several policy initiatives to develop a complete ecosystem of electronics manufacturing.

Government adopted a well thought out strategy to develop India’s electronic manufacturing ecosystem – beginning with the manufacturing of finished products, followed by sub- assemblies, components, and eventually machinery and tools. At the same time, Government focused on creating the necessary infrastructure to support electronics manufacturing.

As a result of these initiatives, India has emerged as global electronics manufacturing hub.

Electronic manufacture in India has expanded significantly in the last 12 years, which can be

seen from the following statistics: # 2014-15 2025-26 Remarks Production of electronics goods (₹) ~1.9 Lakh Cr ~13.11 Lakh Cr Increased 7 timesExport of electronics goods (₹) ~38 thousand Cr ~4.24 Lakh Cr Increased 11 times Production of mobile phones (₹) ~18 thousand Cr ~6.27 Lakh Cr Increased 33 times Export of mobile phones (₹) ~15 hundred Cr ~ 2.59 Lakh Cr Increased 165 times The growth in electronics manufacturing has been possible due to various measures taken by the Government in the last 12 years for promotion of electronics manufacturing. Some of the

major initiatives include: ● PLI Scheme for Large Scale Electronics Manufacturing ● PLI Scheme 2.0 for IT Hardware ● Electronics Component Manufacturing Scheme (ECMS) ● Semicon India Programme ● Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme ● Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) ● Modified Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India.

● Public Procurement (Preference to Make in India) Order to promote using made in India goods. ● Allowing 100% FDI in the sector These initiatives are Pan-India in nature and are designed to create an enabling ecosystem for industrial growth across the country. The location of manufacturing units, however, is determined by the industry based on commercial and operational considerations along with Ease of Doing Business (EoDB) extended by State Governments. Accordingly, while the Government provides policy support and incentives applicable across India, the final decision regarding the establishment and location of manufacturing facilities rests with the industry.

Projects approved under various schemes in Andhra Pradesh:

In the state of Andhra Pradesh, 89 manufacturing units have been approved under various schemes of MeitY. The details are as below: # District Number of Electronics Manufacturing Units 1 Tirupati 54 2 Chittoor 20 3 YSR Kadapa 12 4 Vishakhapatnam 2 5 Krishna 1

(i) Semicon India Program Recognising the importance of Semiconductors, the Government launched Semicon India Programme in January 2022 for setting up of semiconductor fabs, display fabs semiconductor packaging and for promotion of Indian designed chips.Under Semicon India Programme, Government has approved one (01) unit for setting up a Semiconductor facility in Vishakhapatnam, Andhra Pradesh. The production capacity of the facility would be around 96 million units/annum.

(ii) Electronics Component Manufacturing Scheme (ECMS) To further deepen and broaden the electronics manufacturing ecosystem, Government has recently launched Electronics Components Manufacturing Scheme (ECMS). The Scheme aims to develop robust component manufacturing ecosystem by attracting investments (global/domestic) across sub-assemblies such as Display Modules, Camera Modules, Optical Transceivers; key components such as Printed Circuit Boards (PCBs), passive components, electro-mechanical components, Li-ion Cells, Enclosures; capital equipment for electronics manufacturing; and their supply chains. Under this scheme, two (02) applications in Chittoor and six (06) applications in Tirupati have been approved in the state of Andhra Pradesh.

(iii) 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 to provide momentum to electronics manufacturing and to boost domestic manufacturing of mobile phones in the country. Under this scheme, two (02) companies have been approved in Chittoor district of Andhra Pradesh.

(iv) PLI Scheme for IT Hardware Subsequently, 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, AIO, servers, etc.), attract large investments, reduce import reliance and make India a trusted global supply chain hub. Under this scheme, one (01) application has been approved in Chittoor district of Andhra Pradesh.

(v) Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) SPECS was notified on 1st April 2020 to help offset the disability for domestic manufacturing of electronic components. 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. The target segments under the scheme are electronic components, ATMP, capital goods, e-waste and solar value chain. In Andhra Pradesh, two (02) applications, one each in Tirupati and Chittoor have been approved under the scheme.

(vi) Modified Special Incentive Package Scheme (M-SIPS) The Modified Special Incentive Package Scheme (M-SIPS) provided subsidy for investments in capital expenditure for setting up electronics manufacturing facilities (20% for units set up in SEZs units and 25% for non-SEZ units). For the state of Andhra Pradesh, total nine (09) applications have been approved, with six (06) in Chittoor and one (01) each in Tirupati, Krishna and Vishakhapatnam districts for various electronics products including mobile phones, advanced electronic systems, PCBAs, and products for defense, medical, industrial, energy, and consumer electronics applications.

Electronics Infrastructure, R&D and Skilling initiatives in Andhra Pradesh Electronics Manufacturing Clusters (EMC 2.0) To provide plug-and-play manufacturing infrastructure with ready land, utilities, and common facilities to reduce setup time and enhance production efficiency, the Government notified the Electronics Manufacturing Clusters (EMC) Scheme. These clusters are implemented by Project Implementing Agency of the respective State Governments through varying Centre-Statefinancial assistance models, wherein, the State Governments are responsible for developing and implementing the requisite infrastructure. Three (03) EMCs have been approved at Chittoor district with a total project cost of Rs. 380 Cr. covering an area of 708 acres with central finance assistance of Rs. 163 Cr. Similarly, one (01) cluster under EMC 2.0 has been approved at YSR Kadapa district with a project cost of Rs. 749 Cr. covering an area of 540 acres with central finance assistance of Rs. 350 Cr.

Chips to Startup (C2S) Programme Government launched Chips to Startup (C2S) programme to provide industry ready manpower in chip design. Under this programme, access to cutting-edge chip design tools has been

provided at no cost. So far, access to advanced Electronic Design Automation (EDA) tools has been provided to twenty-three (23) academic institutions in Andhra Pradesh, out of which four

(04) are in Tirupati, two (02) in Kurnool and one (01) each in Anantapur and Nanyal district of Rayalaseema region.

In addition to above, the following institutions have also been provided financial support for implementing R&D projects in the State of Andhra Pradesh:

1. Indian Institute of Technology (IIT) Tirupati

2. Indian Institute of Information Technology Design and Manufacturing (IIIT-DM), Kurnool

3. National Institute of Technology (NIT), West Godavari

4. Shri Vishnu Engineering College for Women, Bhimavaram, West Godavari Skilling NIELIT Tirupati Centre in Andhra Pradesh, has been established to strengthen the IECT ecosystem through innovative curriculum development, industry-aligned training, and high- quality learning content in emerging technologies. The Centre is also to contribute to the India Semiconductor Mission by supporting the development of a skilled workforce and strengthening India's electronics manufacturing and design ecosystem.

Following is the Training targets under the VLSI/Semiconductor domain for NIELIT Tirupati:

Type of Program Training targets Non-formal Education Programmes 60 Short-term Courses 270 Joint Training & Certification Programmes with Industry 60 Faculty Development Programmes (FDPs) 60 Total Participants in VLSI/Semiconductor Domain 450 These initiatives are designed to strengthen the semiconductor talent pipeline by enhancing industry-relevant skills, fostering academia–industry collaboration, and supporting the objectives of the India Semiconductor Mission (ISM).

In the State of Andhra Pradesh, NIELIT has one centre at Tirupati and 20+ partner institutes across the State out of which 7 are in the Rayalaseema Region. *******