The Modi government, on Wednesday approved the Production Linked Incentive Scheme 2.0 for IT hardware with a budgetary outlay of ₹ 17,000 crore.
The electronics manufacturing industry in India has experienced steady expansion, achieving a compound annual growth rate (CAGR) of 17 percent over the past eight years. This growth has propelled production to a significant milestone, surpassing USD 105 billion (approximately ₹ 9 lakh crore) this year.
After the cabinet meeting, Union Minister for IT and Telecom Ashwini Vaishnaw informed reporters that the budget allocation for the IT Production Linked Incentive (PLI) program amounts to ₹ 17,000 crore, with a duration of six years.
PLI Scheme 2.0 for IT hardware includes servers, ultra-small form factor devices, all-in-one PCs, laptops, and tablets.
The initiative, according to the minister, is anticipated to result in increased production of 3.35 lakh crore, increased investment of 2,430 crore, and increased direct employment for 75,000 people during the course of the scheme.
The PLI project for IT hardware, with a budget of 7,350 crore, was approved by the government in February 2021. It covers the production of laptops, tablets, All-in-One PCs, and servers.
However, business leaders have asked the government to increase spending in that area.
The PLI Scheme, which was introduced in April 2020 with a concentration 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 (about Rs. 90 thousand crore).
India is becoming a major electronics manufacturing nation as the global electronics manufacturing ecosystem moves there.
The Union Cabinet has authorised PLI programme 2.0 for IT hardware, which builds on the success of the Production Linked Incentive programme (PLI) for mobile phones.