New Delhi: The Union Cabinet today approved the Production Linked Incentive (PLI) Scheme 2.0 for IT Hardware with a budgetary outlay of Rs. 17,000 crores. The scheme covers laptops, tablets, all-in-one Personal Computers, servers and ultra-small form-factor devices.
The tenure of this scheme is 6 years. While the expected incremental production is Rs. 3.35 lakh crore, the expected incremental investment is Rs. 2,430 crores, and the expected incremental direct employment is 75,000.
The Union Cabinet noted that electronics manufacturing in India has witnessed consistent growth with a 17% Compound Annual Growth Rate (CAGR) in the last 8 years. This year it crossed a major benchmark in production – 105 billion USD (about Rs 9 lakh crore). The Cabinet further noted India’s emergence as the world’s second-largest manufacturer of mobile phones. Exports of mobile phones crossed 11 billion USD this year (about Rs 90 thousand crores).
Building on the success of the Production Linked Incentive scheme (PLI) for mobile phones, the Union Cabinet today approved PLI Scheme-2.0 for IT hardware.
Moreover, the Cabinet noted that the global electronics manufacturing ecosystem is coming to India, and India is emerging as a major electronics manufacturing country. It is emerging as a trusted supply chain partner for all global majors and large IT hardware companies have shown interest in establishing manufacturing facilities in India. This is further supported by the 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,” the Cabinet noted.
– global bihari bureau
