PLI scheme for Indian hardware

The modified production-linked incentive scheme for information technology (IT) hardware manufacturing that was approved by the Cabinet today will generate around 75,000 direct jobs and three times as many indirect jobs, Union Minister Ashwini Vaishnaw said on May 17.

“This will generate an expected incremental direct employment of 75,000. We know that the direct-to-indirect employment ratio is 1:3 in this sector. So another 2 lakh of employment will be generated,” the minister said.

The Cabinet has approved a PLI scheme worth Rs 17,000 crore for IT hardware, known as PLI Scheme 2.0. The scheme aims to enhance the domestic manufacturing of laptops, tablets, all-in-one PCs, servers, and ultra-small form factor devices. The scheme has a tenure of six years and is expected to bring about incremental production worth Rs 3.35 lakh crore.

According to the government, India crossed the landmark of $10 billion in mobile phone exports and $105 billion in overall electronics manufacturing last year. Now, its aim is to replicate the success of promoting domestic smartphone and telecom equipment production in the manufacturing of devices such as laptops and other advanced computers.

The government expects that the new version of the PLI scheme will ramp up the total electronics manufacturing in the country to $300 billion per year.

“Two companies have become exporters of very complex telecom equipment. That is the big picture you have to see,” said Vaishnaw.

“There is a complex ecosystem of IT hardware — we are thinking how to bring them to India, help them localise, how our Indian companies grow in a systematic way so that their capabilities increase. Keeping these in mind, a comprehensive program today has been approved” he added.