The Union Cabinet, chaired by Prime Minister Narendra Modi, has given its approval to the Production Linked Incentive Scheme 2.0 (PLI) for IT Hardware. This scheme aims to bolster the electronics manufacturing sector in India and has been allocated a budgetary outlay of Rs 17,000 crore. The announcement comes as electronics manufacturing in the country has experienced significant growth, surpassing the $105 billion (about Rs 9 lakh crore) production benchmark this year with a 17 percent compound annual growth rate (CAGR) over the last 8 years.
Speaking to reporters following the cabinet meeting, Union Minister for IT and Telecom, Ashwini Vaishnaw, stated, “For IT PLI, the budgetary outlay is Rs 17,000 crore. The tenure of the program is 6 years.” This PLI scheme for IT Hardware is expected to play a crucial role in further strengthening the domestic manufacturing ecosystem, promoting exports, generating employment opportunities, and making India a global hub for electronics production.
The scheme will provide incentives to companies involved in the manufacturing of laptops, tablets, personal computers, and servers, among other IT hardware products. These incentives will be based on the incremental sales of such products over the base year, which is yet to be announced. The PLI scheme will encourage both domestic and foreign manufacturers to establish or expand their production facilities in India, fostering the creation of a robust and self-reliant IT hardware manufacturing ecosystem.
With the successful implementation of previous PLI schemes, such as those for mobile phones and pharmaceuticals, the government aims to replicate the same level of success in the IT hardware sector. These schemes have led to significant investments, job creation, and technology transfer, boosting India’s manufacturing capabilities and reducing import dependence.
The PLI scheme for IT Hardware is expected to attract major global players, incentivizing them to invest in India and contribute to the country’s economic growth. It will also support the government’s “Make in India” initiative by encouraging local production and reducing imports of IT hardware, thereby saving foreign exchange.
In addition to strengthening the manufacturing ecosystem, the PLI scheme will also focus on developing the component ecosystem, fostering research and development (R&D), and promoting innovation in the IT hardware sector. This will create a favorable environment for indigenous development of critical components and technologies, ultimately enabling India to become a global leader in advanced IT hardware manufacturing.
The approval of the PLI scheme for IT Hardware reaffirms the government’s commitment to building a self-reliant and globally competitive electronics manufacturing sector in India. The scheme’s implementation is expected to accelerate the growth of the IT hardware industry, boost exports, generate employment opportunities, and enhance the country’s overall technological capabilities.
As the PLI scheme takes effect, it is anticipated that India’s IT hardware sector will witness a significant expansion, further establishing the nation as a preferred destination for electronics manufacturing and attracting substantial investments from both domestic and international players.