Cabinet approves Rs. 17000 crore IT Hardware PLI 2.0 scheme
The Indian Cabinet has approved the Production Linked Incentive Scheme 2.0 (PLI Scheme 2.0) for IT Hardware. This Rs 17,000 crore initiative intends to increase IT hardware production in India, which has grown steadily.
The IT hardware PLI Scheme 2.0 includes laptops, tablets, all-in-one PCs, servers, and ultra-small form factor devices. The six-year project has a Rs 17,000 crore budget.
Over the past eight years, the country’s electronics manufacturing industry has grown 17%, reaching $105 billion (roughly Rs. 90,000 crore) in production this year.
The Union Cabinet approves the Production-Linked Incentive (PLI) Scheme 2.0 for IT Hardware with a budgetary outlay of ₹ 17,000Crore. #Atmanirbhar Bharat. #PLIITHardware2.0 #AtmaNirbharBharat #manufacturing #electronics@AshwiniVaishnaw @Rajeev_GoI @alkesh12sharma @amiteshks1 pic.twitter.com/0dqlga91az
— Electronics India (@Electronics_GoI) May 17, 2023
The PLI Scheme has made India a significant electronics manufacturer. The government intends to increase IT hardware production with PLI Scheme 2.0.
PLI Scheme 2.0 for IT Hardware
PLI Scheme 2.0 is estimated to improve production by Rs 3.35 lakh crore. The initiative is intended to generate 75,000 direct jobs and Rs 2,430 crore in additional investments. Following the February 2021 acceptance of a Rs 7,350 crore IT gear project, the PLI project was expanded.
The April 2020 PLI Scheme, which enhanced mobile phone manufacture, strengthened Indian electronics. India is now the second-largest mobile phone manufacturer in the world. This year, mobile phone exports reached a significant milestone of 11 billion US$ (or roughly Rs 90 thousand crore).
This is crucial as India draws large IT hardware companies to set up manufacturing facilities there by establishing itself as a reliable supply chain partner for international majors. The PLI Scheme 2.0 should strengthen the IT hardware industry, generate employment, and strengthen the economy.