- The Central Government approved Rs. 17,000cr PLI scheme For IT hardware
- Government approved the second phase of the Production Linked Incentive or PLI scheme for IT hardware
- The move is aimed to accelerate domestic manufacturing of hi-tech electronics, building on efforts that catapulted India to become the second-largest mobile phone manufacturer in the world.
- The PLI will cover the production of high-tech electronics such as laptops, PCs, all-in-one computers, servers and ultra-small form factor devices.
- India is moving from the mindset of ‘import substitution’ to ‘catering to the global demand’.
- The scheme is expected to add production worth ₹3.35 lakh crore, draw in new investments worth ₹2,430 crore, and lead to 75,000 new jobs over the six-year period.
- Following the PLI Scheme’s success in establishing a robust, globally recognized foundation for smartphone manufacture, PLI 2.0 will strengthen India’s electronic and IT hardware industry further and its presence in the global value chain
The IT hardware sector of India:
- Electronics manufacturing in India has witnessed consistent growth with 17% compound annual growth rate in last 8 years.
- The annual Electronics manufacturing in India has crossed major benchmark in production i.e., ₹9 lakh crore.
- The global electronics manufacturing ecosystem is coming to India, and India is emerging as a major electronics manufacturing country.
- Over the past three years, India has attempted to capitalize on a global disillusionment with China’s manufacturing industry.
- The first PLI scheme helped sweeten the deal for a number of tech giants, including companies such as Apple.
- Under the new scheme, companies will get an incentive of up to 5% and an optional incentive of 4% if they use domestically-produced components.
SOURCE: THE HINDU, THE ECONOMIC TIMES, PIB