Union Cabinet Gives Nod to PLI Scheme 2.0 for IT Hardware
New Delhi — Union Cabinet Wednesday granted approval for the Production Linked Incentive Scheme 2.0 (PLI) for IT Hardware. The scheme, with a budgetary outlay of INR 17,000 crore, aims to bolster the electronics manufacturing sector in India and enhance the country’s position as a global manufacturing hub.
Over the past eight years, the electronics manufacturing industry in India has experienced a remarkable growth rate of 17% compounded annually. This year, it achieved a significant milestone by reaching a production value of $105 billion (approximately Rs. 9 lakh crore). India has also emerged as the world’s second-largest manufacturer of mobile phones, with exports crossing an impressive $11 billion (around Rs. 90 thousand crore).
The scheme will cover various IT hardware products, including laptops, tablets, all-in-one PCs, servers, and ultra-small form factor devices.
The PLI Scheme 2.0 is set to run for a duration of six years and is expected to generate incremental production worth Rs. 3.35 lakh crore. It also aims to attract incremental investments amounting to Rs. 2,430 crore and create around 75,000 direct employment opportunities in the IT hardware manufacturing sector.
India’s emergence as a reliable supply chain partner for global technology giants, coupled with robust domestic demand and a flourishing IT services industry, has piqued the interest of major IT hardware companies. Many prominent players have expressed their keenness to establish manufacturing facilities in India, with the intention of catering to the domestic market and transforming India into an export hub.
The implementation of the PLI Scheme 2.0 for IT hardware is expected to further boost the country’s manufacturing capabilities and reinforce India’s position as a preferred destination for electronics manufacturing. The scheme aligns with the government’s vision of achieving self-reliance in the technology sector and promoting the “Make in India” initiative.
“Today’s announcement for PLI 2.0 with the additional financial outlay for IT Hardware is an excellent step for the comprehensive growth of the Indian electronics manufacturing industry. Apart from traditional categories like mobile and telecom, the special focus given to IT Hardware showcases the astute vision of our government. Optiemus Electronics is manufacturing IT Hardware for many reputed brands under the current PLI and now with the PLI 2.0, we are actively considering and evaluating our options to participate in this new phase of growth in electronics manufacturing. On behalf of the industry, we would like to thank the electronics minister and Hon’ble Prime Minister for this visionary step taken today,” said Optiemus Electronics Limited Managing Director A. Gururaj.