PLI Scheme 2.0: India's IT hardware sector gets a Rs 17,000 crore boost

Rs 17000 Crore PLI Scheme For IT Hardware Gets Approved By Union Cabinet

The Production Linked Incentive Scheme 2.0 for IT Hardware, with a budgeted allocation of Rs 17,000 crore, was approved by the Cabinet, presided over by Prime Minister Narendra Modi, on Wednesday, May 17.

The PLI Plan 2.0

The financial cost for the IT PLI plan, according to Union Minister for IT and Telecom Ashwini Vaishnaw, will be Rs 17,000 crore throughout its six-year lifespan. The plan will include all-in-one PCs, servers, laptops, tablets, and ultra-small form factor gadgets.

Gratitude to PM @narendramodi Ji for approving a budgetary allocation of ₹17,000 Cr in the PLI Scheme 2.0 for IT Hardware in the Union Cabinet today.

It will propel India towards becoming a global manufacturing hub and an investment destination while creating 75000 direct jobs. pic.twitter.com/hoTGDwjDmZ

— Amit Shah (@AmitShah) May 17, 2023

Some of the expected advantages associated with the PLI Scheme 2.0 for IT gear, according to Union Minister Vaishnaw, include drawing fresh capital into the electronics manufacturing industry and providing 75,000 job opportunities. This will also increase exports so that India can rely less on imports. It might even assist India in overtaking other countries in manufacturing IT gear.

The Union Minister added that an additional output value of Rs 3.35 lakh crore is expected due to the program. The plan, which also tackles servers and personal computers, is supposed to help Indian and international businesses, including Dell, Wistron Corp., Dixon, and Foxconn.

The History Of the PLI Scheme

The PLI plan has considerably aided the expansion of electronics manufacturing in India since it was first introduced in April 2020 with an emphasis on mobile phone production. India is now the second-largest producer of mobile phones in the world, with March’s shipments of mobile phones reaching $ 11 billion (about Rs 90 thousand crores). The nation is quickly making a name for itself as a critical center for electronics production, drawing in the whole global electronics manufacturing ecosystem.

With a financial allocation of Rs 7,350 crore, the government had earlier, in February 2021, authorized the PLI program for IT gear, focussing on the manufacturing of laptops, tablets, All-in-One PCs, and servers. As per The Indian Express, industry participants had, however, asked for an increase in the budgetary allocation for this category.