GG News Bureau
New Delhi, 17th May. The Union Cabinet chaired by Prime Minister Narendra Modi, on Wednesday approved the Production Linked Incentive Scheme 2.0 for IT Hardware with a budgetary outlay Rs. 17,000 crore.
Context:
- Electronics manufacturing in India has witnessed consistent growth with 17% CAGR in the 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)
- The global electronics manufacturing ecosystem is coming to India, and India is emerging as a major electronics manufacturing country
- Building on the success of Production Linked Incentive scheme (PLI) for mobile phones, the Union Cabinet today approved PLI Scheme 2.0 for IT hardware
Salient features:
- 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
Significance:
- 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 a 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.