In a major announcement for the IT hardware sector, the Union Cabinet gave its approval to the Production Linked Incentive (PLI) Scheme 2.0 for the sector with a budgetary outlay of Rs 17,000 crore.
The announcement comes at a time when India is emerging as a trusted supply chain partner globally. Electronics manufacturing in India has witnessed consistent growth, with a 17% CAGR in the last 8 years.
Union Minister Ashwini Vaishnaw also mentioned at the briefing that this year, electronic goods worth approximately USD 105 billion were manufactured.
Further, the scheme will provide an additional boost to the country’s growing mobile phone manufacturing sector. It is noteworthy that India has become the world’s second-largest manufacturer of mobile phones. Exports of mobile phones crossed a major milestone of USD 11 billion (about Rs 90 thousand crore) this year.
In a statement released by the central government, it stated that the PLI scheme 2.0 for IT hardware covers laptops, tablets, all-in-one PCs, servers, and ultra-small form factor devices. Further, the tenure of this scheme is 6 years.
It is anticipated that the scheme will provide an incremental production of around Rs. 3.35 lakh crore, with an expected incremental investment of Rs. 2,430 crore. In addition, it is anticipated that it will result in 75,000 incremental direct employment opportunities.
The electronics manufacturing sector in India has been experiencing significant growth in recent years. The Indian government has implemented various initiatives to promote domestic manufacturing and attract investments in this sector. Moreover, large IT hardware companies have shown interest in establishing manufacturing facilities in India. The government’s focus on attracting investments, promoting domestic manufacturing, and supporting innovation is expected to further strengthen the sector in the coming years.
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