India’s PLI Scheme initiative to boost local manufacturing received a significant impetus as the Union Cabinet, spearheaded by Prime Minister Shri Narendra Modi, sanctioned the Production Linked Incentive (PLI) Scheme 2.0 for IT hardware on May 17, 2023. This extension of the successful mobile phone PLI scheme now encompasses laptops, tablets, all-in-one PCs, servers, and ultra-small form factor devices.
Today, the approval of applications from 27 prominent IT hardware manufacturers marks a pivotal moment in India’s push for self-reliance in the technology sector. Recognizable names such as Acer, Asus, Dell, HP, Lenovo, among others, will commence manufacturing operations within the country’s borders. The projected outcomes during the scheme’s tenure are poised to make substantial contributions to India’s economic landscape.
Key facets of the approval include an estimated employment boost of around 200,000 jobs. This will encompass approximately 50,000 direct positions and a substantial 150,000 indirect employment opportunities within the IT hardware manufacturing ecosystem.
Highlights of the PLI 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”.
In terms of financial implications, the scheme is anticipated to spur a staggering 3.5 lakh crore rupees (equivalent to 42 billion US dollars) worth of IT hardware production. Concurrently, companies are set to inject investments amounting to 3,000 crore rupees (approx. 360 million US dollars) into the Indian market.
Addressing both industry leaders and the media, Minister of Railways, Communications, Electronics, and Information Technology, Shri Ashwini Vaishnaw, underscored the readiness of the approved applicants. “Twenty-three out of the twenty-seven approved applicants are poised to commence manufacturing operations on day zero,” Minister Vaishnaw highlighted during the announcement.
The successful implementation of the PLI Scheme 2.0 for IT hardware is expected not only to fortify India’s position as a manufacturing hub but also to bolster technological advancements within the country. This initiative aligns with the government’s larger vision of fostering self-reliance in critical sectors and fostering sustainable economic growth.
The PLI scheme‘s extension to cover a wide array of IT hardware signifies a concerted effort to reduce dependency on imports, enhance local production capacities, and create a conducive environment for innovation and technology development within India’s borders.