A total of 19 companies have filed their application under the Production Linked Incentive (PLI) Scheme for IT Hardware. The scheme was open for applications till April 30, 2021, with incentives applicable under the scheme from April 1, 2021.
The PLI scheme extends an incentive of 4% to 2%/1% on net incremental sales (over base year of FY2019-20) of goods under target segments that are manufactured in India to eligible companies, for a period of four years (FY2021-22 to FY2024-25).
Following the success of PLI scheme in bringing investments in mobile phone (handsets and components) manufacturing, the Union Cabinet has approved the PLI for IT hardware products. The target hardware segments under the proposed scheme include laptops, tablets, all-in-one personal computers (PCs) and servers. The scheme proposes PLI to boost domestic manufacturing and attract large investments in the value chain of these IT hardware products.
Over the next four years, the scheme is expected to lead to total production of about Rs 1,60,000 crore; of which more than 37% will be contributed by exports of Rs 60,000 crore. Out of the total production, IT hardware companies have proposed a production of over Rs 1,35,000 crore and domestic companies have proposed a production of Rs 25,000 crore. The scheme is expected to promote exports significantly.
Ravi Shankar Prasad, Union Minister for Electronics & IT, Communications, Law and Justice, said the PLI scheme for IT Hardware has been huge success in terms of the applications received from global as well as domestic companies engaged in manufacturing electronics hardware products. “Industry has reposed its faith in India’s stellar progress as a world class manufacturing destination and this resonates strongly with Prime Minister’s clarion call of Atmanirbhar Bharat – a self-reliant India.”
The minister said they are optimistic and looking forward to building a strong ecosystem across the value chain and integrating with the global value chains, thereby strengthening electronics manufacturing ecosystem in the country.
India, under initiatives such as “Digital India” and “Make in India” has witnessed an unprecedented growth in electronics manufacturing in the last five years. The National Policy on Electronics 2019 envisions positioning India as a global hub for Electronics System Design and Manufacturing (ESDM) by focusing on size and scale, promoting exports and enhancing domestic value addition by creating an enabling environment for the industry to compete globally.
The government is confident that the PLI scheme and other initiatives to promote electronics manufacturing will help in making India a competitive destination for electronics manufacturing and boost Atmanirbhar Bharat.