New Delhi, NFAPost: The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, approved the Production Linked Incentive Scheme 2.0 for IT Hardware with a budgetary outlay Rs. 17,000 crore.
Electronics manufacturing in India has witnessed consistent growth with 17% CAGR in last 8 years. This year it crossed a major benchmark in production at $105 (about Rs 9 lakh crore).
India has become the world’s second largest manufacturer of mobile phones. Exports of mobile phones crossed a major milestone of $11 billion this year (about Rs 90 thousand crore).
PLI Scheme, launched in April 2020 with a focus on mobile phone production, has given a massive boost to electronics manufacturing in the country.
The tenure of the programme will be applicable for six years and the government expects investments worth Rs 2,430 crore in the scheme.
“This move will help more Indian companies grow and they can combine design and manufacturing to become global brands. We believe that the final investment in the IT hardware PLI 2.0 will be more than what we expect, just like the telecom PLI scheme,” said IT and Railways Minister Ashwini Vaishnaw.
The global electronics manufacturing ecosystem is coming to India, and India is emerging as a major electronics manufacturing country.
Building on the success of Production Linked Incentive scheme (PLI) for mobile phones, the Union Cabinet today approved PLI Scheme 2.0 for IT hardware
Salient features:
PLI Scheme 2.0 for IT hardware covers laptops, tablets, all-in-one PCs, servers and ultra small form factor devices
The budgetary outlay of the scheme is Rs. 17,000 crore
The tenure of this scheme is 6 years
Expected incremental production is Rs. 3.35 Lakh crore
Expected incremental investment is Rs. 2,430 crore
Expected incremental direct employment is 75,000
Significance:
India is emerging as a trusted supply chain partner for all global majors. Large IT hardware companies have shown keen interest in establishing manufacturing facilities in India. This is further supported by strong IT services industry having good demand within the country.
Most majors would like to supply domestic markets within India from a facility situated in India as well as make India an export hub.
