Central government approves Rs 17,000 crore PLI scheme 2.0 for IT hardware

The government of India has approved Production Linked Incentive Scheme 2.0 today (May 17, 2023) for IT hardware with a budgetary outlay of Rs. 17,000 crore for a tenure of 6 years. The ministry said that PLI Scheme 2.0 for IT hardware covers laptops, tablets, all-in-one PCs, servers, and ultra-small form factor devices.

Under the PLI scheme, the expected incremental production is Rs. 3.35 lakh crore and the expected incremental investment is Rs. 2,430 crore. It is expected that under the scheme, there will be employment opportunities for nearly 75,000 individuals.

The ministry stressed on the fact that electronics manufacturing in India has witnessed consistent growth with a 17 per cent CAGR in the last 8 years, and this year, it crossed a major benchmark in production – $105 billion (about Rs 9 lakh crore).  

"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 the strong IT services industry, which has 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," stated the ministry in their release.

Earlier in February 2021, the government had approved the PLI scheme for IT hardware, focusing on the production of laptops, tablets, all-in-one PCs, and servers, with a budgetary outlay of Rs 7,350 crore. However, industry players had requested an enhancement of the outlay for this segment.

The PLI scheme was initially launched in April 2020 with a focus on mobile phone production. India has become the world's second-largest manufacturer of mobile phones, with mobile phone exports surpassing $11 billion (around Rs 90,000 crore) in March.

The global electronics manufacturing ecosystem is coming to India, and it 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.

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