Government of India Boosts IT Hardware Industry with PLI Scheme – 2.0 Worth ₹17,000 Crore

#ProductionLinkedIncentiveScheme #PLI #ITHardware #ElectronicsManufacturing

Source: PIB

Electronics manufacturing in India has witnessed consistent growth with 17 percent CAGR in the last 8 years. This year it crossed a major benchmark in production – US$105 billion (about ₹9 lakh crore).

May 2023 : The Union Cabinet, chaired by Prime Minister Narendra Modi has recently approved the Production Linked Incentive Scheme 2.0 for IT Hardware with a budgetary outlay ₹17,000 crore.

Context: Electronics manufacturing in India has witnessed consistent growth with 17 percent CAGR in the last 8 years. This year it crossed a major benchmark in production – US$105 billion (about ₹9 lakh crore). India has become the world’s second largest manufacturer of mobile phones. Exports of mobile phones crossed a major milestone of US$11 billion this year (about ₹90 thousand crore). The global electronics manufacturing ecosystem is coming to India, and India is emerging as a major electronics manufacturing country. Building on the success of the Production Linked Incentive scheme (PLI) for mobile phones, the Union Cabinet has 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 ₹17,000 crore
The tenure of this scheme is 6 years
Expected incremental production is ₹3.35 Lakh crore
Expected incremental investment is ₹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 a 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.

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