About 95% of these 23 companies are ready to start manufacturing from day-zero.~ Ashwini Vaishnaw
Applications from 27 IT hardware manufacturers have been approved under the production linked incentive (PLI) scheme – 2.0. Prominent brands such as Acer, Asus, Dell, HP, and Lenovo are among those that will now manufacture their IT hardware in India. The anticipated outcomes of this approval over the scheme’s duration are significant:
The scheme is expected to create a total of approximately 200,000 jobs, with around 50,000 direct and about 150,000 indirect employment opportunities. The production value is projected to be around 3 lakh 50 thousand crore rupees, equivalent to 42 billion US dollars. The companies are expected to invest about 3,000 crore rupees, translating to 360 million US dollars.
During an interaction with industry leaders and the media, Shri Ashwini Vaishnaw, Minister of Railways, Communications, Electronics, and IT, disclosed that “23 out of the 27 approved applicants are ready to commence manufacturing immediately from day zero and about 4 companies will start their manufacturing within 90 days.” This development marks a significant step towards enhancing India’s manufacturing capabilities in the IT hardware sector.
The PLI scheme 2.0, with a budgetary outlay of INR 17000 crores, was approved on May 17, 2023 to boost domestic manufacturing and attract large investments in the value chain. It will offer an average incentive of 5% on the net incremental sales of goods that are manufactured in India.
These goods fall under the specified target segment and the incentive will be provided to eligible companies over a period of six years. The target segment under the Production Linked Incentive (PLI) Scheme includes laptops, tablets, all-in-one personal computers (PCs), servers, and ultra small form factor (USFF) devices.