MeitY's PLI scheme: Production worth Rs 1.61 lakh crore, 36, 000 direct jobs in 4 years! a BIG step towards making India ATMANIRBHAR in IT hardware manufacturing

MeitY Production Linked Incentive (PLI) Scheme for IT Hardware: In order to boost the domestic manufacturing of hardware products and attract large investments in the value chain of these hardware products, Ministry of Electronics and Information and Technology (MeitY) has taken a big initiative. The Production Linked Incentive Scheme (PLI) is a big step towards making India 'AtmaNirbhar' and in the coming years this initiative will attract huge investment and generate employment opportunities, said MeitY.

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It has to be noted that the MeitY has approved 14 eligible applicants under the PLI for IT Hardware. The PLI Scheme for IT Hardware notified on March 3, 2021. The scheme extends an incentive on net incremental sales (over base year of FY 2019-20) of goods under target segments that are manufactured in India to eligible companies, for a period of four years (FY2021-22 to FY 2024-25). The target segments under the PLI Scheme for IT hardware include laptops, tablets, all-in-one personal computers (PCs) and servers.

According to the release from MeitY, four companies have been selected under the category IT Hardware Companies which include Dell, ICT (Wistron), Flextronics and Rising Stars Hi-Tech (Foxconn). Furthermore, under the category of Domestic Companies, 10 companies namely Lava International Limited, Dixon Technologies (India) Limited, Infopower Technologies (JV of Sahasra and MiTAC), Bhagwati (Micromax) Neolync, Optiemus, Netweb, Smile Electronics, VVDN and Panache Digilife have been approved.

The release stated, "Over the next 4 years, the approved companies under the PLI Scheme for IT Hardware are expected to lead to a total production of more than Rs 1.61 lakh crore. Out of the total production, the approved companies under IT Hardware companies category have proposed a production of Rs 84,746 crore." In addition to this, the approved companies under Domestic Companies category have proposed a production of Rs 76,007 crore. The scheme will bring additional investment in IT Hardware manufacturing to the tune of Rs 2,517 crore.

Apart from the production and investment, the PLI scheme will generate an additional direct employment opportunities of more than 36000 over the next four years along with creation of additional indirect employment of nearly 3 times the direct employment. Domestic Value Addition is expected to grow from the current 10-15 per cent to 25-30 per cent.

It is expected that the demand for electronics goods will grow manifold by 2025, Ravi Shankar Prasad, Union Minister for Electronics & IT, Communications, Law and Justice expressed his confidence that the PLI scheme and other initiatives to promote electronics manufacturing will help in making India a competitive destination for electronics manufacturing and give boost to AtmaNirbhar Bharat.