IT Hardware PLI Scheme Generates Rs 10,015 Crore Output A Step Toward Strengthening India Manufacturing Ecosystem
IT Hardware PLI Scheme Generates Rs 10,015 Crore Output A Step Toward Strengthening India Manufacturing Ecosystem. The Production Linked Incentive (PLI) Scheme for IT Hardware has been a major success for India’s electronics sector, generating a total output worth Rs 10,014.72 crore by December 2024. Launched to encourage domestic manufacturing, the scheme covers a range of electronic products, including laptops, desktops, smartphones, and servers. The IT Hardware PLI Scheme 2.0, approved on May 17, 2023, has added more value by focusing on enhancing local production of various IT devices.
IT Hardware PLI Scheme Generates Rs 10,015 Crore Output A Step Toward Strengthening India Manufacturing Ecosystem
Key Achievements
- Total Output: Rs 10,014.72 crore by December 2024.
- Investment: Rs 522.17 crore attracted through the scheme.
- Job Creation: 3,879 direct jobs generated.
- Key Manufacturers: Major companies such as Acer, Asus, Dell, HP, and Lenovo have been approved under the scheme.
The scheme is built upon the successful implementation of the Mobile Phone PLI Scheme, which has already made India the second-largest smartphone manufacturer globally. The IT hardware version, introduced with PLI Scheme 2.0, aims to further strengthen the country’s position in the global electronics market.
What Does the PLI Scheme 2.0 Offer?
The PLI Scheme 2.0 for IT hardware focuses on several strategic areas to boost domestic production, including:
- Localisation of Components: Encouraging companies to source raw materials and components from within India, reducing dependence on imports.
- Supply Chain Development: Building a robust supply chain to support the demand for IT hardware products.
- Semiconductor Design and Manufacturing: Promoting the design and manufacture of semiconductors in India, an essential component for many electronic devices.
Under this scheme, companies receive an incentive of around 5% on their net incremental sales of goods produced in India, based on their performance against investment and sales targets. This incentive is available for a period of six years, encouraging long-term growth in the sector.
The Impact of IT Hardware PLI Scheme on India’s Manufacturing Ecosystem
The PLI Scheme for IT Hardware is designed to attract global brands to manufacture their products locally, boosting India’s electronics manufacturing sector. Here’s how the scheme is reshaping India’s IT landscape:
- Diversification of Product Range: The scheme supports the production of laptops, tablets, all-in-one PCs, servers, and ultra-small form factor devices, expanding India’s product range in the electronics market.
- Increased Investments: With over Rs 522 crore in investments so far, the scheme has already spurred significant financial commitment from global companies to establish and expand their operations in India.
- Creation of Jobs: By generating 3,879 direct jobs, the scheme is playing a crucial role in job creation, especially in the IT and electronics sectors.
The government’s focus on semiconductor design, IC manufacturing, and packaging also promises to reduce India’s dependency on foreign suppliers for crucial electronic components, bolstering its self-reliance.
Success of the Mobile PLI Scheme – A Model for IT Hardware
The success of India’s Mobile has set a strong precedent for the IT hardware version. The mobile phone sector has seen impressive growth, with mobile phone production reaching Rs 4.10 lakh crore, making India the second-largest mobile manufacturer in the world. This success has propelled India’s ambition to become a global hub for IT hardware manufacturing.
The government has set a target to achieve $20 billion in smartphone exports, and with the expansion of the IT hardware scheme, it expects the same success in the IT hardware sector. By boosting local production and fostering a competitive environment for global manufacturers, India is positioning itself to become a significant player in the international electronics market.
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Conclusion: A Bright Future for India’s IT Hardware Sector
The IT Hardware PLI Scheme has proven to be a critical driver for India’s electronics manufacturing sector. The success of PLI Scheme 2.0 signals a bright future for the country’s IT hardware manufacturing, as it strives to achieve self-reliance and become a global leader in electronics production.
With continued support for localizing production, growing semiconductor industries, and creating jobs, India is set to strengthen its position as a manufacturing powerhouse. The scheme will positively impact not only the electronics market but also the broader economy, as the country attracts investments and innovation in the IT sector.
