China accounted for over half of India's electronic and communication items import that stood at USD 37.2 billion in April-February period of 2015-16.
"As per Directorate General of Commercial Intelligence and Statistics (DGCI&S), Kolkata, the total import of electronic and communication items stood at USD 37.2 billion in 2015-16 (up to February) from USD 33.5 billion in 2012-13," Communications and IT Minister Ravi Shankar Prasad said in a written reply to the Lok Sabha.
This includes computer hardware, peripherals, consumer electronics, components, telecom instruments and batteries.
"Large scale import of electronic (including telecommunication) items is taking place from China as China has substantial share in global manufacturing of electronics," he added.
Export of electronic and communication items from India, on the other hand, has steadily declined from USD 8.2 billion in 2012-13 to USD 7.8 billion (2013-14), USD 6.2 billion (2014-15)and USD 5.3 billion in 2015-16 (up to February).
"The promotion of electronics manufacturing is one of the pillars of Digital India programme. The target to achieve 'Net Zero Import' by 2020 is a manifestation of the intent," Prasad said.
Under the Modified Special Incentive Package Scheme (M-SIPS), the government provides financial incentives to offset disability and attract investments in the electronics systems design and manufacturing (EDSM) sector. The scheme was notified in July 2012.
Since May 2014 till March 2016, investment proposals worth approximately Rs 1.05 lakh crore have been received in DeitY under M-SIPS.
Major investors are Bosch, GE, Sterlite, Mundra Solar, LG, Harman, Flextronics, Lava, Micromax, Karbonn, BHEL, BEL, Hero Moto Corp, among others.
"Investment proposals are mostly in the verticals of display fab, solar, telecom, automotive electronics, electronics components and consumer electronics," he said.
M-SIPS provides subsidy for investments in capital expenditure - 20 per cent for investments in SEZs and 25 per cent in non-SEZs.
Under the Electronics Hardware Technology Park (EHTP) scheme, approved units are allowed duty free import of goods required by them for carrying out export activities, CST reimbursement and excise duty exemption on procurement of indigenously available goods, as per Foreign Trade Policy.