Make In India

By Spotlight - 26-03-2019

The demand of Electronics System Design and Manufacturing (ESDM) is estimated to grow exponentially to USD 400 Billion by 2023-24. The Government attaches high priority to electronics & IT hardware manufacturing. It has the potential to generate domestic wealth and employment, apart from enabling cyber-secure ecosystem. The electronic manufacturing sector requires continuous push with the overall objective of promoting “Make in India”, not only to meet the domestic demand but also to promote India as a hub for electronics manufacturing. Several policy initiatives under the “Digital India” and “Make in India” programmes are designed to facilitate investment, foster innovation, protect intellectual property, and build best in- class manufacturing infrastructure towards creating conducive environment for attracting investment in the electronics hardware manufacturing sector.

The intent of the Government is to ensure a level playing field for domestic manufactures to enable them to compete with imports in the sector by rationalization of tariff structure, simplification of procedures, providing incentives and upgrading infrastructure. As a result of various measures taken over the last few years, production of electronics hardware has shown significant increase. The demand of electronics hardware is increasingly being met by domestic production. The following initiatives have been taken in this regard –

Modified Special Incentive Package (M-SIPS):
In order to promote large scale manufacturing in the country, a Modified Special Incentive Package Scheme (M-SIPS) was announced by the Government in July 2012 to offset disability and attract investments in Electronics System Design and Manufacturing (ESDM) Industries. The scheme mainly provides subsidy for investments in capital expenditure- 20% for investments in Special Economic Zones (SEZs) and 25% in non-SEZS. The incentives are provided on reimbursement basis. The policy provides for an inter-ministerial Appraisal Committee to evaluate investment applications. Based on the recommendation of Appraisal Committee, approval of Competent Authority is obtained.

The Union Cabinet in its meeting held on 21st July 2015 has approved the extension of M-SIPS and also approved amendment of M-SIPS in order to simplify the procedure and enhancement of scope and the notification of amendment in M-SIPS (simplifying procedure, enhancement of scope and extension for 5 years) was issued on 3rd August, 2015. Further, the Union Cabinet in its meeting held on 18th January, 2017, approved certain amendments in the M-SIPS policy which were notified on 30th January, 2017. As per the aforesaid amendments, applications under the Scheme will be received till 31st December 2018 or till such time that the incentive commitment reaches `10,000 crore, whichever is earlier.

Incentives under the scheme will now be available for investments made within 5 years from the date of approval. These amendments are expected to expedite investments in electronic manufacturing. As per the directions of the Cabinet, a separate committee headed by Cabinet Secretary has been set up for mega projects, envisaging more than ` 6850 crore investments (investment above 1 billion USD).

The status of M-SIPS applications as on 28th February 2018: So far, total 322 applications, with investment amounting to `1,33,861 crore have been received under M-SIPS. Of which, 148 applications
with investment of approximately `27,460 crore have been approved. 19 applications with investments of approximately `12,253 crore have been recommended by the Appraisal Committee for approval, 80 applications with investments of approximately `42,193 crore have been closed due to incomplete applications or not meeting the eligibility criteria under the scheme and 73 applications involving investments of `14,378 crore are under appraisal. 


Electronic Manufacturing Clusters (EMC)
To create and strengthen the infrastructure ecosystem for electronics manufacturing, the Government notified Electronics Manufacturing Cluster (EMC) Scheme in October 2012 to support creation of world-class infrastructure for attracting investments in Electronics System Design and Manufacturing Sector. The Scheme was open for receiving applications for a period of five years from the date of notification. Assistance for the projects in Greenfield Electronics Manufacturing Clusters is restricted to 50% of the project cost subject to a ceiling of `50 crore for every 100 acres of land. For larger areas, pro-rata ceiling applies. At the lower end, the extent of support is decided by the Steering Committee for Clusters (SCC) subject to the ceiling of `50 crore. For Brownfield EMC, 75% of the cost of infrastructure, subject to a ceiling of `50 crore is provided as grant.

MeitY received 50 applications under EMC scheme (46 application for setting up of Greenfield EMCs and 4 applications for setting up of Common Facility Centre (CFC) in Brownfield Clusters). Till 28th February, 2018, MeitY has accorded final approval to Twenty (20) Greenfield EMCs and Three (3) Common Facility Centres (CFCs) and In- Principle approval to Three (3) Greenfield EMCs. The details are as under: 

List of Final Approved Greenfield EMC S.No. State Location/City

1 Andhra Pradesh Village-Cherivi, Satyavedu Mandal, Chittor District
2 Vikruthamala Village, Yerpedu Mandal, Chittor District
3 Renigunta and Yerpedu Mandal, Chittoor District, Near Airport, Tirupati
4 Assam Bongora (Village), Chayani (Mouza), Palasbari (Revenue Circle), Kamrup (R) (District)
5 Chhattisgarh Village-Tuta, Sector-22, Naya Raipur, Tehsil-Abhanpur, Raipur District
6 Gujarat Village-Tunda, Taluka- Mundra, District-Kutch
7 Goa Village-Tuem , Taluka- Pernem Goa
8 Jharkhand Adityapur, Saraikela-Kharsawan District
9 Kerala Kakkanad Village, Kanayannur Taluk, Ernakulam District
10 Madhya Pradesh Badwai-Bhopal
11 Purva-Jabalpur
12 Odisha Infovalley, Bhubaneswar Industrial Area, Khurda District
13 Rajasthan IA, Salarpur, Khushkera, Bhiwadi
14 Karoli Industrial Area, Bhiwadi, Alwar District
15 Telangana E-city, Fab City, Hyderabad
16 Maheshwaram, Ranga Reddy District
17 Uttar Pradesh Plot No. 6/A, sector-24, Yamuna Expressway
18 Plot No.1, Block C, Ecotech-VI Industrial Area, Greater Noida.
19 West Bengal Sector-IV & V, Falta Industrial Centre, P.S. Ramnagar, South 24Parganas District
20 Naihati town, North 24 Parganas District

List of Final Approved Common Facility Centre (CFC) S.No. State Location/City
1 Karnataka Plot No.360, KIADB Industrial Area, Hebbal, Hottagalli, Mysore
2 Maharashtra Plot No.-P 30, Shendra Five Star Industrial Area, Aurangabad District
3 Plot No. J/P-8, J 462 and J 462/P, Pimpri Industrial Area, Pune 

Till date, the Government Grant-in-aid amounting to ` 251.85 crore has been released to 12 EMC projects to kick-start the infrastructure activities.

Electronic Development Fund (EDF):

Electronics Design & Manufacturing is a sector, which is characterized by high velocity of technological change. Intellectual Property is the most critical determinant of success, not only for the companies of this sector but also to the countries and economies as a whole. Setting up of EDF was one of the important strategies which would enable creating an electronics industry ecosystem in the country. Creating a vibrant ecosystem of innovation, Research and Development (R&D) with active industry involvement is essential for a thriving electronics industry. It is with this objective that an Electronics Development Fund (EDF) is set up as a “Fund of Funds” to participate in professionally managed “Daughter Funds”, which in turn will provide risk capital to companies developing new technologies in the area of Electronics, Nano-electronics and Information Technology (IT).

This fund is expected to foster R&D and innovation in these technology sectors EDF enables creation of an ecosystem for providing risk capital to both industry and academia to undertake Research and Development in these technology areas. It will, in the process, enrich the intellectual property in the country and encourage more entrepreneurs towards product and technology development. M/s. Canbank Venture Capital Funds Ltd. (CVCFL), a 100% subsidiary of Canara Bank, is the Investment Manager and MeitY is the anchor investor of EDF. EDF was launched on 15th February, 2016 by Hon’ble Minister for Electronics & IT. Twenty two Daughter Funds have been selected for investment through EDF. The cumulative commitment of EDF to these 22 Daughter Funds is `1227 crore and the total targeted corpus of these 22 Daughter Funds is around `10,900 crore. Till date EDF has drawn `56.99 crore from its contributors, which includes `51.24 crore from MeitY and has invested `16.38 crore to two Daughter Funds. As on date EDF has invested in Two Daughter Funds, which in turn have made investments in 14 Ventures.

Compulsory Safety Standards for Electronics:

Keeping in view the safety of Indian consumers and to curb the inflow of substandard electronic products, the “Electronics and Information Technology Goods (Requirements for Compulsory Registration) Order, 2012”. The Order necessitates creation of institutional mechanism for developing and mandating standards and certification for electronic products to strengthen Conformity Assessment infrastructure nationwide. As per the Scheme, the manufactures seeking registration of goods with the Bureau of Indian Standards (BIS), have to get their products tested at BIS recognised labs. Testing is also to be performed on selected samples during the surveillance, subsequent to registration. The surveillance is to be conducted by MeitY. This Order initially covered 15 notified electronic products categories and 15 additional electronic items were notified under the ambit of CRO on 13th November 2014.

MeitY has notified the following product categories under the Compulsory Registration Order-Phase-III vide Gazette notification dated 23rd August, 2017. The items include recessed LED Luminaries, LED Luminaires for Road and Street lighting, LED Flood Lights, LED Hand lamps, LED Lighting Chains, LED Luminaires for Emergency Lighting, UPS/Inverters of rating < 10kVA,Plasma/ LCD/LED Television of screen size up-to 32”,Visual Display Units, Video Monitors of screen size up-to 32”,CCTV Cameras/CCTV Recorders, Adapters for household and similar electrical appliances, USB driven Barcode readers, barcode scanners, Iris scanners, Optical fingerprint scanners and Smart watches. The Order came into effect from 23rd May 2018.

Scheme for setting up / up-gradation of Electronic products testing / Quality Control Laboratories.
To strengthen the conformity assessment infrastructure, DeitY notified “Scheme for setting up / up-gradation of Electronic product testing / Quality Control Laboratories” on 25th August 2013.The objective of the scheme is to encourage setting up testing facilities by Central / State / Academic Institutions which will be used for evaluating goods under the “Electronics and Information Technology Goods. 

Growth of Electronics Sector:
The total global electronics hardware industry is about US $ 2 Trillion, out of which, India’s Production was about US$ 47 billion during the year 2016-17. The domestic consumption in India was about $ 86.4 billion during the year 2016-17, while exports were about US$ 6 billion. The current value addition in the sector ranges from 5-30% in India, depending upon the constituent of value chain. For example, it is around 25-30% in components, whereas, it is approx. 5-15% at SKD assembly level. The Electronics sector has several verticals in terms of its main constituents. At present, the availability of Production data of this sector is limited to the information provided by various Industry Associations. Based on the same, the production profile of the Electronics Sector is as follows:-


Production of Electronics Sector (Rupees in crore) SNo Item / vertical 2013-14 2014-15 2015-16 2016-17 2017-18
1 Consumer Electronics@ 47,599 55,806 55,765 64,742 73,524
2 Industrial Electronics 33,600 39,374 45,083 62,214 69,057
3 Computer Hardware 17,484 18,691 19,885 20,382 21,401
4 Mobile phones 26,650 18,900 54,000 90,000 1,32,000
5 Strategic Electronics 13,800 15,700 18,055 20,760 23,562
6 Electronic Components 32,102 39,723 45,383 52,099 58,351
7 Light Emitting Diodes (LED) Products
1,941 2,172 5,092 7,134 9,630 Computed Total 1,80,454 1,90,366 2,43,263 3,17,331 3,87,525
Notes:- (1) Data above is as provided by respective Industry Associations.
(2) Source: 1 - CEAMA; 2, 5, 6 & 7 - ELCINA; 3 - MAIT; 4 - ICA;
(3) @- Includes Home Appliances, viz., Refrigerator, Washing Machine, Air Conditioner & Microwave Oven - from 2012-13 onwards.
(4) * - Estimates are as provided by respective Industry Associations.

The total production of the aforesaid verticals of electronics sector in India is estimated to be about `3,87,525 crore in 2017-18, compared to `3,17,331 crore in 2016-17, exhibiting a growth of about 22%. As a result of various initiatives taken by the Government and efforts of Industry, production of electronics in India has shown significant growth during the last three years.

Consumer Electronics
The Flat panel TV market has shown a substantial growth in the last 5 years as a result of digitalization
of broadcast sector and increased affordability due to reduction in price. As a result of conducive Government policies, the production of LCD/LED TVs got a boost and has increased to 16.0 million numbers valued at about `26,400 crore in 2017-18, from 14.5 million Nos. valued at about `23,925 crore in 2016-17, exhibiting a growth rate of about 10%.

The production for Home Theaters is estimated to witness a growth of about 0.76 million nos., valued at about `924 crore in 2017-18, compared to 0.7 million nos., valued at `840 crore in 2016-17. With the advancement of technology, the conventional TV (with Picture Tube / CRT), in contrast to the LCD / LED segment, has continued to register negative growth of production. As per CEAMA, production of CRT TVs is estimated to be one million during 2017-18 valued at `400 crore. Similarly, production of DVD players has continued to decline due to rapid growth of DTH sector, digitalization of TV network and use of set Top Boxes (STB). Public Address System segment of consumer electronics is estimated to continue to grow steadily by about 10% in 2017-18, with an estimated production value of about `1,210 crore, as against `1,100 crore in 2016-17.

Consumer Durables / Home Appliances
This sub-sector comprising of Air Conditioners, Washing Machines, Refrigerators and Microwave Ovens has shown a growth rate of about 17.2% with a value of `44,590 crore in 2017-18, as against `38,035 crore in 2016-17. As per CEAMA, the overall production of this segment of electronics industry, including Consumer Durables / Home Appliances was `64,742 crore in 2016-17 and is estimated to grow by 13.6% to about `73,524 crore in 2017-18.

Industrial Electronics
Fresh investments in engineering, electrical, automotive and electronics segments are driving the growth of Industrial Electronics sector. The key application segments of the Industrial Electronics industry are process control equipment, test & measuring equipment, power electronics equipment, automation and analytical instruments. These technologies are gaining ground as modernization, automation and robotics are the future growth areas. Information Technology and software are playing a major role in value added Industrial electronics.

The Industrial electronics segment viz., power electronics, process control and automation equipment with built-in software and analytical instruments account for nearly 81% of the total industrial electronics production. Most of the domestic demand is catered to by domestic manufacturing. The power electronics space is dominated by unorganized regional players, which is expected to grow at higher rate due to huge demand and low penetration. Inverters and UPS are becoming household items driving the growth of this segment.

Some of the larger players include BHEL, Bluestar, ABB, GE, Keltron, Allen-Bradely, Amara Raja, Sukam, APC, Numeric, Honeywell, etc. Some of these players have set up global tie-ups over the last few years and have brought in newer technologies into the Indian markets. Solar Photovoltaic and allied equipment is another segment, which is likely to grow at a sustained high growth rate. As per estimates provided by ELCINA, the total production of Industrial Electronics during 2017-18 is estimated to be about `69,057 crore, as against `62,214 crore during 2016-17, exhibiting a growth of about 11%.

Computer Hardware
Computer hardware comprises of Desktops, Laptops, Note Books, Tablets/ Net Books, Servers, other computing devices, Microprocessor based systems and Computer peripherals. With the advent of technology, varieties of mobiles, viz., smart phones and hand-held devices with the capabilities/ power / features of computers have been entering the market. Hence, the usage of conventional Desktops has diminished for personal purposes. However, the usage of the computers and its peripherals in commercial, industrial and offices is likely to grow at a steady pace. The Indian computer hardware Industry has been undergoing a change in its product composition. The production of computer hardware increased from `19,885 crore in 2015-16 to `20,382 crore in 2016- 17, exhibiting a growth rate of 2.5%. It is expected to reach to about `21,401 crore during the year 2017-18, exhibiting a growth rate of about 5%.

Mobile Phones
The Mobile handsets sector has emerged as the champion category under the ‘Make in India’ initiative of the Government. There has been massive growth in Mobile handsets and components manufacturing and India has emerged as the new manufacturing destination for mobile handsets and components.
Mobile handsets and components manufacturing activity continued to accelerate during 2017-18. As many as 120 manufacturing units of Mobile handsets and components have been set up in India during the past three years. Out of these, about 59 units are producing mobile handsets and rest of them are engaged in manufacturing various components of mobile handsets, such as chargers/ adapters, battery packs, wired headsets, mechanical parts, USB cables etc., spread across India. Most of the big companies associated with the mobile handset manufacturing eco-system in the world are now in India. Names like Foxconn, Samsung, Wistron (Apple), Micromax, Intex, Lava, HTC, Huawei, Vivo, Oppo, Pegatron, Xiaomi, HMD (Nokia) etc. are currently having significant manufacturing operations in India.

India’s dependency on imported handsets has drastically reduced due to the growing manufacturing activity of handsets during the past couple of years. Consequently, drop-in-growth of imports has been approx. 30% in 2016-17 over 2015-16, which is estimated to continue further to reach about 25% in the current financial year 2017-18 over 2016-17.

The production of Mobile handsets grew to approx. `90,000 crore in 2016-17 compared to `54,000 crore in 2015-16, exhibiting a growth rate of about 66%, whereas, the production of Mobile handsets is estimated to be about `1,32,000 crore in 2017-18. In volume terms, production grew to about 175 million in 2016-17, over 110 million in 2015-16, exhibiting a growth of about 60%, which is further estimated to grow to 225 million units in 2017-18.

India has the second largest wireless network in the world. The country has witnessed a significant rise in manufacture of mobile handsets during the last three years. The value share of mobile handsets industry in the total electronics segment in India is estimated to be nearly 35%, which makes mobile handsets industry the largest electronics vertical. Several initiatives have been taken during the year leading to significant investments in new manufacturing operations. Some of the important initiatives like Phased Manufacturing Programme (PMP) for mobile handsets have played a key role to transform the manufacturing space.

Strategic Electronics
Electronics is a key area of defence technologies and become a vital component of nearly all the weapon
systems, platforms and equipment designed and developed for defence purpose. The strategic electronics segment consists of Military Communication systems, Radars and Sonars, Network Centric systems, Electronic Warfare systems, Weapon systems, Satellite based Communication, Navigation and Surveillance systems, Navigational aids, Underwater electronic systems, Infra-Red (IR) based detection and ranging system, Disaster management system, Internal security system etc.

However, the sector is dependent on imports and foreign technology. Recently, few domestic small and
medium scale companies have come up and they have the capability to absorb technology and meet stringent requirements of strategic equipment. Some of these companies provide EMS services and meet critical supply requirements of MNCs as well as Defence PSUs. These include companies such as Rangsons, Centum Electronics, Kaynes Technology, Data Patterns and more. Some of the larger Indian business groups are foraying into strategic electronics sector and these include, Tata, L&T, Wipro and HCL, who have the capability and resources to take up big offset projects and collaborate with global leaders. As per ELCINA, the production of Strategic Electronics has grown from `18,055 crore during 2015-16 to `20,760 crore during 2016-17. The production is estimated to be about `23,562 crore during 2017-18, exhibiting a growth of about 13.5% over 2016-17. India’s defence, aerospace and nuclear sectors are poised for substantial growth on the back of economic growth and the need to maintain national and energy security. The role of IT in defence is also expanding with the focus on cyber security.

Electronic Components
The policies and schemes of the Government, including, inter-alia, rationalization of tariff structure, Phased Manufacturing Programme (PMP), Modified Special Incentive Package Scheme (M-SIPS) and notification of electronics products under the Public Procurement (Preference to Make in India), Order 2017 for the growth of electronics sector, under the umbrella of ‘Make in India’ and ‘Digital India’ Programmes and increase in the customs duty on LED Lights, Set Top Boxes (STBs), Energy Metres, Flat Panel TVs, Mobile Phones, Microwave Ovens etc., will have a cascading positive impact on the domestic demand for relevant components.

It is also expected that the export in the components segment shall witness a gradual upward trend as Merchandise Exports from India Scheme (MEIS) benefit for electronic components has also been increased. The focus by the Government and the Industry on Electric Vehicles (EVs) will also add value to the sector, encouraging local manufacturing. As per ELCINA, Electronic Industries Association of India, the domestic production of electronic components for the year 2017-18 is estimated to be about `58,351 crore vis-à-vis `52,099 crore during 2016-17, exhibiting a growth of about 12%.

It is, however, noteworthy that a significant share (over 70%) of this component production is being exported leaving about 25% for domestic consumption, which is used in domestic electronic equipment production. Majority of electronic components are not manufactured in the country and have to be imported. As such, Government has been taking proactive measures for promotion of domestic manufacturing of electronic components.

The emerging high growth areas for domestic manufacturing are LED lighting, Automotive electronics, Energy meters, Solar energy, Mobile Phones and IT products apart from the existing sectors, viz.,
telecommunications, consumer electronics and industrial electronics, which are driving the growth of electronic components manufacturing in the country. The Indian electronic component production is dominated by electro-mechanical components (like printed circuit boards, connectors, etc.,) with 29% share and passive components (like wound components, capacitors, resistors, etc.) with 24% share. Further, the shares of active components (like ICs, diodes, transistors, picture tubes, etc.) and the associated components (like optical disc, magnets, RF tuners etc.) of the components industry are about 18% and 29%, respectively.

The Electronics Manufacturing Services (EMS) industry in India is growing rapidly and key global players as well as a number of domestic companies are operational in the country. This segment needs very high efficiency of operations to stay profitable. Availability of components and an effective supply chain is vital for EMS companies for their growth. Domestic companies have generally followed the business model of staying in low-volume and high-mix business segments, where the margins are better. However, the EMS players need to operate in high-volume and low-margin segments to compete with the global players.

Light Emitting Diodes (LEDs) Products
One of the driving forces for growth in electronics manufacturing and for growing electronic components demand is the Indian Lighting market. The demand for energy efficiency has brought forward an immediate need for more energy efficient products, such as Light Emitting Diode (LED) products. LED is the choice for next generation energy efficient lighting for its technical and economic virtues. Many countries have set LED as the national strategic industry. It is foreseen that LED products will have a penetration of about 75% by 2020. LED products save about 70% and 50% energy, as compared to the use of Incandescent Lamps (IL) and Fluorescent Lamps (FL), respectively. Over the years, opportunities for Light Emitting Diodes (LEDs) have increased in automobiles, communications, signage, signaling, architecture and entertainment sectors. The opportunity for LEDs in the general space illumination segment of residential and commercial buildings is expanding rapidly. As per ELCINA, the LED Products manufacturing in India is estimated to reach `9,630 crore in 2017-18, as compared to the production of about `7,134 crore in 2016-17, exhibiting a growth of about 35%.

Automotive Electronics
With the growth of Automobile industry and the increasing digitization of automobile controls, Automotive electronics has come to occupy an important segment of the electronics industry. Automotive Component Manufacturing Association (ACMA) has projected that Indian Automotive Electronics Sector will reach approximately `36,500 crore by 2020. The global market for automotive electronics is set to account for 230 Billion US $ in 2020, from 140 Billion US $ in 2010. Some key technologies used in automotive electronics are as Anti-lock Braking System (ABS), Body Control Module (BCM), Tyre Pressure Monitoring System (TPMS), Electronic Power Steering (EPS) etc., while parking, cam, crank and oxygen sensors are the key sensors to be focused.

Medical Electronics
Medical devices play a crucial role from the diagnosis to the after-care phase of medical treatment and
significantly impact affordability of and access to healthcare. As per the Annual Report of Department of
Pharmaceuticals, the global medical devices market is expected to grow to US $ 332 billion by 2020, from an estimated US $ 228 billion in 2015 due to rising prevalence of chronic diseases; ageing population; increasing income and affordability, resulting in higher demand & utilization of healthcare services. The Indian market is among the top twenty in the world by market size, and fourth in Asia after Japan, China and South Korea. Indian market is import–dependent to the extent of 70%. 

Government has taken several measures for the growth of the exports of Electronics Hardware sector. Special Economic Zones (SEZs) set up to enable hassle-free manufacturing and trading for export purposes and EHTP units are the major contributors to exports. 100% Income Tax exemption on export profits is available to SEZ Units for 5 years, 50% for next 5 years and 50% of ploughed back profits for 5 years thereafter. The Electronics Hardware Technology Park (EHTP) Scheme is an export oriented scheme for undertaking manufacturing of electronic goods. Merchandise Exports from India Scheme (MEIS) benefits are available for export of electronic goods under the Foreign Trade Policy (FTP 2015-20). The other schemes for export promotion are Export Promotion Capital Goods (EPCG) Scheme, Duty Exemption and Remission Schemes, Duty Free Import Authorization (DFIA) Scheme, Deemed Exports, etc. Due to the effective steps taken, exports have been showing signs of improvement during the year 2017-18, as compared to the year 2016-17. As per the Directorate General of Commercial
Intelligence and Statistics (DGCI&S) data, the export of electronic goods was US $ 5962.9 Million (`39,979.6 crore) during 2016-17, as compared to US $ 5959.5 Million (`39,063.5 crore) during 2015-16.

As per the DGCI&S data, the total import of Electronics into India in 2016-17 was US$ 42,878.9 million (Rs.2,87,558 crore), as compared to the import during the preceding year 2015-16, which was about US$ 40,939.8 million (Rs.2,68,105.3 crore), an increase of 4.74% in US $ terms and 7.26% in rupee terms.