Union Cabinet approves Rs 17,000 crore PLI scheme for IT hardware | India News

NEW DELHI: The Union Cabinet, chaired by Prime Minister Narendra Modi, has granted approval for the Production Linked Incentive Scheme 2.0 for IT Hardware, allocating a budget of Rs 17,000 crore. Over the past 8 years, the electronics manufacturing sector in India has experienced consistent growth, achieving a significant production milestone of $105 billion (approximately Rs 9 lakh crore) this year, with a compound annual growth rate (CAGR) of 17 percent.
According to Union minister for IT and telecom Ashwini Vaishnaw, the IT PLI scheme will have a budgetary outlay of Rs 17,000 crore and will run for a duration of 6 years. The scheme will encompass laptops, tablets, all-in-one PCs, servers, and ultra-small form factor devices.
According to Union minister Vaishnaw, some of the expected benefits of the PLI Scheme 2.0 for IT hardware are as follows:

The Union minister further said that the scheme is expected to result in an incremental production value of Rs 3.35 lakh crore.
The programme, which also covers personal computers and servers, is expected to benefit global and Indian companies such as Dell, Wistron Corp, Dixon, and Foxconn.
Earlier in February 2021, the government had approved the PLI scheme for IT hardware, focusing on the production of laptops, tablets, All-in-One PCs, and servers, with a budgetary outlay of Rs 7,350 crore. However, industry players had requested an enhancement of the outlay for this segment.
The PLI scheme, initially launched in April 2020 with a focus on mobile phone production, has significantly contributed to the growth of electronics manufacturing in India. As a result, India has become the world’s second-largest manufacturer of mobile phones, with mobile phone exports surpassing $ 11 billion (around Rs 90 thousand crore) in March. The country is rapidly establishing itself as a major hub for electronics manufacturing, attracting the global electronics manufacturing ecosystem.
With the success of the PLI scheme for mobile phones, the approval of PLI Scheme 2.0 for IT hardware demonstrates the government’s commitment to fostering growth and investment in the electronics manufacturing sector.
(With inputs from agencies)