With a tenure of six years and a budget of Rs 17,000 crore, the Production Linked Incentive scheme will cover laptops, tablets, all-in-one PCs, servers, and ultra-small form factor devices
The high-profile corridors of New Delhi recently sanctioned the Production Linked Incentive (PLI) scheme 2.0 for IT Hardware with a budgetary outlay of Rs 17,000 crore. The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, approved the expansion of the scheme for a tenure of six years. As it has been a long-standing demand of the industry to bolster the domestic manufacturing ecosystem, the revised scheme nearly doubles the overall outlay to around Rs 17,000 crore. It is noteworthy that the PLI scheme was initially launched in April 2020 with a focus on mobile phone production. As per the government, India is now the world’s second-largest manufacturer of mobile phones and we exported over Rs 90,000 crore worth of mobile phones in March this year.
The press release from PIB further revealed that electronics manufacturing in India has seen consistent growth with a 17% CAGR in the last eight years.
The updated scheme is expected to result in an incremental production worth Rs 3.35 lakh crore while employing around 75,000 people directly. The government anticipates an incremental investment of Rs. 2,430 crore with this expansion of PLI.
After the approval, the Union Minister for IT and Telecom, Ashwini Vaishnaw, addressed a press briefing. He stated that with a tenure of six years and a budget of Rs. 17,000 crores, the PLI Scheme 2.0 for IT hardware will cover laptops, tablets, all-in-one PCs, servers, and ultra-small form factor devices.
President of the Electronic Industries Association of India (ELCINA), Shri Sanjay Agarwal commented, “The PLI Scheme 2.0 for IT Hardware will help India emerge as a hub for IT Hardware manufacturing and increase the country’s exports. It will encourage domestic companies to manufacture more IT hardware products in India and promote the development of the IT hardware ecosystem in the country.”
The government believes that India is emerging as a trusted supply chain partner for all global majors and large IT hardware companies have shown keen interest in establishing manufacturing facilities in India.