Domestic production of electronic goods doubled to Rs 8.25 lakh crore

The indigenous production of electronic goods within the nation has witnessed a remarkable surge, more than doubling to reach Rs 8.25 lakh crore in the fiscal year 2022-23, up from Rs 3.88 lakh crore recorded in 2017-18, as disclosed in the recent parliamentary session. Rajeev Chandrasekhar, the Minister of State for Electronics and IT, conveyed in a written response to the Lok Sabha that imports of semiconductors amounted to Rs 1,29,703 crore during 2022-23.

Attributing this growth to a conjunction of governmental initiatives and industry endeavours, the minister emphasized that the domestic production of electronic goods has expanded substantially, achieving a Compound Annual Growth Rate (CAGR) of 16.28 per cent, from Rs 3.88 lakh crore ($60 billion) in 2017-18 to Rs 8.25 lakh crore ($101.9 billion) in 2022-23.

The administration's strategic emphasis remains on enhancing the semiconductor ecosystem, a pivotal facet of India's burgeoning electronics manufacturing and innovation landscape.

With semiconductors constituting a fundamental component of electronic products, their demand has surged in tandem with the growth of the electronics manufacturing sector, resulting in commensurate expansion of the semiconductor market within India.

Chandrasekhar indicated that semiconductors worth Rs 1,29,703 crore were imported in the fiscal year 2022-23 due to the absence of commercial fabrication facilities (fabs) within the country, as reported by the Directorate General of Commercial Intelligence & Statistics (DGCIS) portal.

A significant stride towards bolstering the semiconductor and display manufacturing ecosystem is the government's approval of the Semicon India program, endowed with a total budget of Rs 76,000 crore. This initiative is designed to financially bolster companies investing in semiconductors, display manufacturing, and design ecosystems.

Further, the government has sanctioned the modernization of the SemiConductor Laboratory in Mohali, charting its evolution into a brownfield fabrication facility. Moreover, Micron Technology Inc's proposition to establish a semiconductor Advanced Technology and Manufacturing Process (ATMP) unit in India, with a capital investment of Rs 22,516 crore ($2.75 billion), has been granted approval within the framework of the Semicon India Program.