Union Cabinet Approves Rs 17,000 Crore PLI Scheme for IT Hardware | News from India

NEW DELHI: Union Cabinet, chaired by Prime Minister Narendra Modi, has granted approval for the Incentive scheme linked to production 2.0 for Computer hardware, allocating a budget of Rs 17,000 crore. Over the past 8 years, India’s electronics manufacturing sector has experienced steady growth, reaching a significant output milestone of $105 billion (approximately Rs 9 lakh crore) this year, compound annual growth rate (CAGR) by 17%.
According to Union Minister for IT and Telecommunication Ashwini Vaishnaw, the IT PLI program will have a budget outlay of Rs 17,000 crore and will last for 6 years. The scheme will include laptops, tablets, all-in-one PCs, servers and ultra-small form factor devices.
According to Union Minister Vaishnaw, some of the expected benefits of PLI Scheme 2.0 for IT hardware are as follows:

  • It will attract new investment in the electronics manufacturing sector.
  • It will create 75,000 jobs for young people.
  • It will increase exports.
  • It will help India reduce its dependence on imports.
  • It will help India become a global leader in IT hardware manufacturing.

The union minister further said that the scheme is expected to result in an incremental output value of Rs 3.35 lakh crore.
The programme, which also covers personal computers and servers, is expected to benefit global and Indian companies such as Dell, Wistron Corp, Dixon and Foxconn.
Union Cabinet also approved Rs 1.08 lakh crore fertilizer subsidy for Kharif season
In early February 2021, the government had approved the PLI scheme for IT hardware, focusing on manufacturing Laptops, Tablets, All-in-One PCs and Servers, with a budget outlay of Rs 7,350 crore. However, industry operators had requested an increase in the outlay for this segment.

The PLI scheme, initially launched in April 2020 with a focus on mobile phone manufacturing, has contributed significantly to the growth of electronics manufacturing in India. As a result, India has become the world’s second largest producer of mobile phones, with exports of mobile phones exceeding US$11 billion (about Rs 90 thousand crore) in March. The country is rapidly establishing itself as a major hub for electronics manufacturing, attracting the global ecosystem of electronics manufacturing.
With the success of the PLI scheme for mobile phones, the approval of the PLI 2.0 scheme for IT hardware demonstrates the government’s commitment to promoting growth and investment in the electronics manufacturing sector.
(With contributions from agencies)


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