In a significant move to bolster the country’s IT manufacturing sector, the Union Cabinet, under the leadership of Prime Minister Shri Narendra Modi, has given its approval to the Production Linked Incentive (PLI) Scheme 2.0 for IT Hardware. With a substantial budgetary outlay of Rs. 17,000 crores, this scheme aims to propel India’s position as a global electronics manufacturing powerhouse.
Union Cabinet approved the PLI 2.0 for IT Hardware with an outlay of Rs 17000 crore to position India as global hub for Electronics System Design and Manufacturing (ESDM) as well as advancing large scale manufacturing in Laptops, Tablets, PCs, Servers and Devices and generating… pic.twitter.com/0lqdBEOTii
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The context for this decision stems from the remarkable growth witnessed in India’s electronics manufacturing industry over the past eight years – a staggering 17% Compound Annual Growth Rate (CAGR). A major milestone was recently surpassed with the production value exceeding $105 billion (approximately Rs. 9 lakh crores). Furthermore, India has solidified its position as the world’s second-largest manufacturer of mobile phones, with mobile phone exports surpassing $11 billion (about Rs. 90 thousand crores).
Recognizing India’s emergence as a crucial player in the global electronics manufacturing ecosystem, the PLI Scheme 2.0 for IT Hardware builds upon the success of its predecessor which focused on mobile phones. Under this new scheme, a wide range of products, including laptops, tablets, all-in-one PCs, servers, and ultra-small form factor devices, will be covered.
Features of the PLI 2.0 scheme
- The PLI Scheme 2.0 for IT hardware applies to laptops, tablets, all-in-one PCs, servers and ultra-small form factor devices.
- The scheme boasts a substantial budgetary outlay of Rs. 17,000 crores.
- It spans a tenure of six years, providing a long-term impetus for the growth of the IT hardware industry in the country.
- It is expected that this initiative will generate an incremental production value of Rs. 3.35 lakh crores.
- It will attract an incremental investment of Rs. 2,430 crores.
- The scheme will create approximately 75,000 direct employment opportunities.
India’s transformation into a trusted supply chain partner for global industry leaders has been a driving force behind their interest in establishing manufacturing facilities within the country. This sentiment is reinforced by the robust demand for IT services within India, making it an attractive market for both domestic consumption and export. With the implementation of the PLI Scheme 2.0 for IT Hardware, India aims to further solidify its position as a preferred destination for IT hardware manufacturing.
This ambitious scheme demonstrates the government’s commitment to fostering a conducive environment for innovation, domestic manufacturing, and employment generation in the IT hardware sector. By capitalizing on the nation’s potential and leveraging the benefits of the PLI Scheme 2.0, India is poised to accelerate its journey towards becoming a global leader in electronics manufacturing.
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