New Delhi [India], November 18 : Building on the success of the Production Linked Incentive scheme (PLI) for mobile phones, the Union Cabinet led by Prime Minister Narendra Modi has approved PLI Scheme - 2.0 for IT hardware, said a government release on Saturday.
This scheme covers laptops, tablets, all-in-one PCs, Servers and Ultra Small Form Factor devices.
According to the release, applications from 27 IT hardware manufacturers including Acer, Asus, Dell, HP, Lenovo, etc have been approved. This means IT hardware of these well-known brands will now be manufactured in India.
Addressing industry captains and media, Minister of Railways, Communications and Electronics and IT Ashwini Vaishnaw today informed that "23 out of 27 approved applicants are ready to start manufacturing on day zero".
The expected outcomes of this approval, over the tenure of the scheme, are that a total of about 2 lakh employment will be created which includes about 50,000 (direct) and about 1.5 lakh (indirect). This will invite about 3000 crore rupees in investment by companies, the release stated.
During the press conference, Vaishnaw highlighted that nearly 95 per cent of these approved companies, totalling 23, are ready to commence immediate manufacturing.
Vaishaw said, "The best part is almost 95 per cent of these, the exact number is 23 out of these are ready to start their manufacturing on day 0. And about 4 companies will start their manufacturing within 90 days".
"These 27 applications will lead to about investment of Rs 3 thousand crores additional production amount Rs 3 lacs 50 thousand crores and direct employment of about Rs 50 thousand and indirect employment about a lac and 50 thousand. So total employment about 2 lac will be created. The value chain is shifting to India," the Union Minister added.
The PLI Scheme for IT Hardware, introduced by Prime Minister Narendra Modi and notified on May 29, 2023, with a budgetary outlay of Rs 17,000 crores, aims to enhance the IT hardware manufacturing ecosystem in the country.
The scheme is anticipated to stimulate local manufacturing, encouraging the localization of components and sub-assemblies and fostering the development of a robust supply chain within India.
The PLI schemes, a part of India's Atmanirbhar and 'Make-in-India' initiatives, aim to enhance global competitiveness, attract investments, boost exports, integrate India into the global supply chain, and reduce dependency on imports across various sectors.
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