Union Minister Ashwini Vaishnav briefs the media about the decisions of the cabinet in New Delhi on Wednesday. (Image: PTI/Kamal Singh)
A version of the production-linked incentive scheme was already in existence but based on feedback and interactions with industry insiders, the central government has made some changes.
Union IT Minister Ashwini Vaishnav on Wednesday said that the Cabinet has approved the Production Linked Incentive Scheme 2.0 for IT hardware – laptops, tablets, all-in-one PCs, servers and ultra-small form factor devices – worth Rs 17,000 crore With a budgetary investment of Rs. , A version of this scheme was already in existence but based on feedback and talking to industry insiders, the central government has introduced some changes.
The revised Production Linked Incentive (PLI) scheme was approved by Prime Minister Narendra Modi. “The tenure of the program is six years and the expected investment is Rs 2,430 crore. We are also expecting investment to increase, Vaishnav said.
He said that the expected incremental output was Rs 3 lakh 35 crore, while the expected incremental direct employment was 75,000. He added that the PLI can also generate 2,00,000 indirect jobs.
“Two Indian companies in the electronics manufacturing as well as telecommunications sector have become important manufacturers in the world for complete radio equipment. The US, Germany and France are buying telecom equipment from India and soon the UK will too. It is the bigger picture in which we have to look at the role of IT hardware.
India Cellular and Electronics Association (ICEA) appreciated the revised PLI for IT hardware and is expecting a significant increase in domestic manufacturing and exports. The industry body said that the IT hardware industry is targeted to reach an output of $24 billion by 2025-26, with exports estimated to be in the range of $12-17 billion during the same period.
It further said that the amended PLI was expected to act as a major catalyst for companies, both global and domestic, aiming to set up or expand their IT hardware manufacturing operations in India. It also said that the scheme has made the investment criteria more flexible, extending it to a period of six years as compared to the earlier period of four years. Additional optional incentives have been introduced to further encourage localization.
“PLI 2.0 will ensure investment across the IT hardware value chain, demonstrating the government’s receptivity to industry inputs and their determination to translate words into action,” said ICEA President Pankaj Mahendru.
He added that India currently imports a significant portion of laptops and tablets for consumption. But this revised PLI scheme will not only boost domestic manufacturing but also benefit major global manufacturers of IT hardware products like laptops and tablets.
“We urge the global industry to acknowledge this and consider India as an important destination for manufacturing IT hardware products,” Mahendru said.
Anurag Awasthi, vice-president of the India Electronic and Semiconductor Association (IESA), told News18 that the scheme covers all aspects of semiconductor manufacturing – PCBs, ATMPs, component manufacturing, contract manufacturing, display panels, memory devices, power adapters, etc. . and widely.
“This well-structured, clear, flexible, deliberate and curated PLI 2.0 plan will be the harbinger of nation building in India’s ‘tech’,” Awasthi said.
