In a significant move aimed at bolstering India’s position as a global hub for electronics manufacturing, the Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has given the green light to the PLI Scheme 2.0 (Production Linked Incentive Scheme) for IT hardware. With a budgetary outlay of Rs. 17,000 crore, this scheme is expected to fuel the growth of the IT hardware industry in the country.
Over the past eight years, electronics manufacturing in India has experienced remarkable progress, boasting a Compound Annual Growth Rate (CAGR) of 17%. This year, the industry achieved a momentous milestone with production reaching an impressive $105 billion USD (approximately Rs. 9 lakh crore). Furthermore, India has solidified its position as the world’s second-largest manufacturer of mobile phones, with exports exceeding $11 billion USD (around Rs. 90 thousand crore).
Building upon the success of the PLI scheme for mobile phones, the government has expanded its focus to include IT hardware, which encompasses laptops, tablets, all-in-one PCs, servers, and ultra-small form factor devices. The scheme’s tenure has been set at six years, during which it aims to achieve incremental production worth Rs. 3.35 lakh crore, attract an incremental investment of Rs. 2,430 crore, and generate 75,000 new direct employment opportunities.
Significance of India’s PLI Scheme 2.0
The significance of this initiative lies in India’s emergence as a trusted supply chain partner for global technology giants. Leading IT hardware companies have expressed keen interest in establishing manufacturing facilities within the country, drawn by the robust domestic demand and the country’s thriving IT services industry. With this new PLI scheme, India aims to incentivize the establishment of manufacturing facilities in the country, thereby enabling these companies to cater to both domestic and international markets.
India’s foray into the global electronics manufacturing ecosystem has attracted significant attention, with the nation increasingly being seen as a major player in the industry. As a trusted partner, India offers a favorable business environment and a skilled workforce, making it an attractive destination for multinational corporations looking to expand their manufacturing operations.
With the approval of the PLI Scheme 2.0 for IT hardware, India’s IT hardware manufacturing is set to witness a dramatic surge. The substantial budgetary outlay of Rs. 17,000 crore, coupled with the anticipated incremental production and investment, is expected to propel the industry’s growth and create thousands of new employment opportunities. This move not only solidifies India’s position as a global manufacturing hub but also showcases the government’s commitment to fostering a conducive environment for the growth of the IT hardware sector.
