Published on: May 21, 2023
Production Linked Incentive Scheme – 2.0 for IT Hardware
Why in news? The Union Cabinet, chaired by the Prime Minister, approved the Production Linked Incentive Scheme 2.0 for IT Hardware with a budgetary outlay Rs. 17,000 crore.
- Electronics manufacturing in India has witnessed consistent growth with 17% CAGR in last 8 years. This year it crossed a major benchmark in production – 105 billion USD (about Rs 9 lakh crore)
- India has become the world’s second largest manufacturer of mobile phones.
- Exports of mobile phones crossed a major milestone of 11 billion USD this year (about Rs 90 thousand crore)
- India is emerging as a major electronics manufacturing country
- PLI Scheme 2.0 for IT hardware covers laptops, tablets, all-in-one PCs, servers and ultra-small form factor devices
- The budgetary outlay of the scheme is Rs. 17,000 crore
- The tenure of this scheme is 6 years
- Expected incremental production is Rs. 3.35 Lakh crore
- Expected incremental investment is Rs. 2,430 crore
- Expected incremental direct employment is 75,000
- India is emerging as a trusted supply chain partner for all global majors. Large IT hardware companies have shown keen interest in establishing manufacturing facilities in India. This is further supported by strong IT services industry having good demand within the country.
- Most majors would like to supply domestic markets within India from a facility situated in India as well as make India an export hub.