PLI scheme for IT hardware manufacturing in India to create $45 billion: MAIT

Manufacturers Association Of Information Technology (MAIT), has said the PLI scheme for IT hardware will lead to the revival of IT hardware manufacturing in India and will translate into an annual production opportunity of $45 billion, helping India capture garner 20% share in the global market.

The Cabinet approval for Rs 73.5 billion PLI scheme for the local manufacturing and exports of IT products such as laptops, tablets, personal computers, and servers.

India is expected to see imports of IT hardware amounting to $120 billion over the next decade which presents an opportunity to set up a global scale through PLI for hardware.

“It is the right time for India to boldly position itself on the global map as the preferred destination for ICT hardware manufacturing. Electronics is a sector that requires global scale to be competitive. And now is an opportunity to pursue an aggressive export-led manufacturing strategy of PLI in the national strategic sector of IT Hardware,” MAIT said in a statement.

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The policy for the PLI scheme will be applicable for the local manufacturing and exports of IT products such as laptops, tablets, personal computers, and servers.

It provides manufacturers cash-backs of between 1% and 4% of additional sales of locally made goods over four years, with 2019-2020 as the base year.

Ravi Shankar Prasad , The Telecom, Law and IT minister had said during a press conference that the ambitious plan will enable exports of Rs 2.5 trillion and is likely to create up to 1,80,000 jobs.

These issues are amplified for the electronics industry due to its inherent nature of rapid evolution in technology and products.