The Production Linked Incentive (PLI) scheme is expected to help Indian electronics companies become more competitive and produce high-quality products that can compete with those of multinational corporations (MNCs).
The scheme provides financial incentives to companies that manufacture electronic products in India, which can help them to offset the costs of production and invest in research and development.
This can help Indian companies to develop more innovative and competitive products at par with the MNC brands. The PLI scheme is also expected to encourage the development of a strong ecosystem of suppliers and manufacturers in India, which will further help Indian electronics companies to compete with MNCs.
Building on the success of Production Linked Incentive scheme (PLI) for mobile phones, the Union Cabinet led by Prime Minister Shri Narendra Modi had approved PLI Scheme – 2.0 for IT hardware on 17th May 2023. This scheme covers laptops, tablets, all-in-one PCs, Servers and Ultra Small Form Factor devices.
The aim to enhance India's manufacturing prowess and spur export. The scheme aims to bolster the manufacturing of laptops, tablets, personal computers, servers and Ultra Small Form Factor (USFF) devices. With complex work now beginning to happen in India, there is an increasing level of value addition from here, Vaishnaw said.
Applications of 27 IT hardware manufacturers have been approved today. IT hardware of well-known brands received approval for the IT hardware scheme include Dell, Foxconn, Lenovo, HP, Flextronics, Paget, Sojo, VVDN, Goodworth, Neolink, Syrma, Bhagwati and Optiemus.
Other applicants that have received the green signal include Padget Electronics, SOJO Manufacturing Services, Goodworth, Neolync, Syrma SGS, Mega Networks, Panache Digilife, and ITI Ltd, among others.
Advantages of PLI 2.0 Scheme:
· Employment: total of about 02 lakhs
· About 50,000 (direct) and about 1.5 lakh (indirect)
· Value of IT hardware production: 3 lakh 50 thousand crore rupees (42 billion US dollars)
· Investment by companies: 3,000 crore rupees (360 million US dollars)
Addressing industry captains and media, Minister of Railways, Communications and Electronics and IT Shri Ashwini Vaishnaw informed that “23 out of 27 approved applicants are ready to start manufacturing on day zero”.
"MAIT envisions this as a game-changer for IT hardware manufacturing. With unwavering confidence, we anticipate India's ascent to a leadership position in the manufacturing and export of products such as laptops, tablets, servers...mirroring the transformative success witnessed in the Indian mobile phone industry," Suhail Zaidi Director General of MAIT said.
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