Fri. Jun 2nd, 2023

Electronics manufacturing in India has witnessed consistent growth with a 17% CAGR in the last 8 years. India has also become the world’s second-largest manufacturer of mobile phones. Exports of mobile phones crossed $11 billion (approximately Rs 90 thousand crores) in 2023. After the success of the Production Linked Incentive Scheme (PLI) for mobile phones, the Cabinet has approved PLI Scheme 2.0 for IT hardware. The approved amount for PLI 2.0 for IT Hardware is Rs 17,000 crore.
India is emerging as a major electronics manufacturing country as the global electronics manufacturing ecosystem gradually comes to India. In 2023, it crossed a benchmark in production by surpassing $105 billion (approximately Rs 9 lakh crore).
PLI scheme 2.0: Key details
PLI Scheme 2.0 for IT hardware covers laptops, tablets, all-in-one PCs, servers and ultra-small form factor devices. The budgetary outlay of the scheme is Rs 17,000 crore, the tenure of this scheme is 6 years and the expected incremental production is Rs 3.35 Lakh crore, as per the information provided by the PIB.
The expected incremental investment is Rs 2,430 crore while the expected incremental direct employment is 75,000, it said.
PLI scheme 2.0: Importance
India is emerging as a trusted supply chain partner for all global majors. 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.
IT and Telecom Minister Ashwini Vaishnaw has said that companies having high volume sales are interested in this scheme. According to a report by PTI, iPad-maker Apple is also evaluating the scheme seriously.

“For IT PLI, the budgetary outlay is Rs 17,000 crore. The tenure of the programme is six years… we will accept the first set of applications by October,” Vaishnaw said after the Cabinet meeting.
Moreover, Vaishnaw also said that investments under various PLI schemes have been higher compared to the government estimates. This involved mainly mobile phones and other telecom components.
Under the new scheme, companies will also get an incentive of up to 5% and an optional incentive of 4% for using domestically-produced components. To compare, the incentive was restricted to just 2% under the old scheme.

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Tanushree K

By Tanushree


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