Modi Govt Approves PLI Scheme 2.0 for IT Hardware

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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.
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