The Union Cabinet, haired by Prime Minister Narendra Modi, has given its approval for the second edition of the production linked incentive scheme for IT hardware with a ₹17,000-crore outlay. The government expects the PLI scheme will result in additional production worth ₹3.35-lakh crore and investments of ₹2,430 crore during its duration. It aims to create employment opportunities for around 75,000 people within the next six years.
Electronics manufacturing in India has witnessed consistent growth with a 17 per cent compound annual growth rate (CAGR) in the last 8 years to cross a major benchmark in production -- USD 105 billion (about ₹ 9 lakh crore) -- this year.
PLI Scheme 2.0 for IT hardware covers laptops, tablets, all-in-one PCs, servers and ultra-small form factor devices. Union Minister for IT and Telecom Ashwini Vaishnaw said the scheme is expected to lead to incremental production of ₹ 3.35 lakh crore, incremental investment of ₹ 2,430 crore and create incremental direct employment for 75,000 people during the scheme period.
The government in February 2021 approved the PLI scheme for IT hardware, covering the production of laptops, tablets, All-in-One PCs and servers with an outlay of ₹ 7,350 crore. Industry players had however requested the government to enhance outlay for the segment.
Building on the success of the Production Linked Incentive scheme (PLI) for mobile phones, the Union Cabinet has approved PLI Scheme 2.0 for IT hardware.
