Business
Cabinet Approves Rs 17,000 Crore PLI Scheme for IT Hardware
The Cabinet, chaired by Prime Minister Narendra Modi, approved the Production Linked Incentive Scheme 2.0 for IT Hardware with with Rs 17,000 crore budget.
The PLI scheme for IT hardware has been changed in response to industry feedback. Budgetary expenditures for it will total Rs 17,000 crore. The programme is anticipated to generate an additional Rs 2,430 crore in investment and 75,000 jobs.
The production of electronics in India has increased steadily over the past eight years at a Compound Annual Growth Rate (CAGR) of 17%, surpassing a significant production milestone this year of USD 105 billion.
The budgetary outlay for IT PLI is Rs 17,000 crore. The program’s duration is six years. After the cabinet meeting, Ashwini Vaishnaw, the union’s minister for IT and telecom, spoke to reporters.
“Industry players had requested the government to enhance outlay for the segment”
PLI Scheme 2.0 for IT hardware includes servers, ultra-small form factor devices, all-in-one PCs, laptops, and tablets.
The scheme, according to the minister, is anticipated to result in increased production of Rs 3.35 lakh crore, increased investment of Rs 2,430 crore, and increased direct employment for 75,000 people over the course of the scheme.
The PLI scheme for IT hardware, which will cost Rs 7,350 crore and cover the production of laptops, tablets, All-in-One PCs, and servers, was approved by the government in February 2021.
The PLI Scheme, which was introduced in April 2020 with a focus on the manufacturing of mobile phones, has significantly increased the nation’s electronics manufacturing. India is now the second-largest producer of mobile phones worldwide. In March, mobile phone exports reached a significant milestone of USD 11 billion (roughly Rs 90 thousand crore). India is becoming a major electronics manufacturing nation as the global electronics manufacturing ecosystem moves there.
The Union Cabinet has approved PLI Scheme 2.0 for IT hardware
Major international producers of IT hardware are anticipated to establish production facilities in India as a result of the programme. This will increase domestic production of IT hardware, decrease reliance on imports, and generate employment in the industry.
The programme will also assist India in becoming a hub for the production of IT hardware on a global scale. This will be consistent with the government’s goal of growing India’s economy to $5 trillion by 2025.
A significant step towards achieving this objective is the approval of the PLI scheme for IT hardware. It will contribute to the expansion of India’s electronics manufacturing industry and lay a solid foundation for future economic development.