Boosting India’s IT Hardware Sector PLI Scheme 2.0
Boosting India’s IT Hardware Sector PLI Scheme 2.0. The Production Linked Incentive (PLI) scheme has emerged as a game-changer for India’s manufacturing sector. Building on the success of the PLI scheme for mobile phones, the government approved PLI Scheme 2.0 for IT hardware on May 17, 2023. This expanded initiative aims to foster innovation, improve the manufacturing ecosystem, and promote indigenous production of IT hardware products. As a result, the scheme has contributed significantly to the growth of India’s IT sector.
Boosting India’s IT Hardware Sector PLI Scheme 2.0
PLI Scheme 2.0 for IT Hardware
The PLI Scheme 2.0 for IT hardware supports the manufacturing of a wide range of products, including laptops, tablets, all-in-one PCs, servers, and ultra-small form factor devices. This scheme incentivises companies to boost their production capacity and strengthen the domestic supply chain.
Key Achievements
- Total Output: As of December 2024, the PLI scheme for IT hardware has generated a total production value of Rs 10,014.72 crore.
- Investment: The scheme has attracted Rs 522.17 crore in investment.
- Employment: Around 3,879 direct jobs have been created through this initiative.
Objectives of PLI Scheme 2.0
- Strengthening the Manufacturing Ecosystem: The PLI scheme is designed to boost India’s manufacturing capabilities by promoting localisation and developing a robust supply chain.
- Incentives for Innovation: Companies receive an average incentive of about 5% on net incremental sales of products manufactured in India.
- Support for Semiconductor Industry: It promotes semiconductor design, IC manufacturing, and packaging, encouraging companies to innovate and diversify their production.
Major Players Approved Under the Scheme
Several leading IT hardware manufacturers have been approved under the PLI Scheme 2.0, including:
- Acer
- Asus
- Dell
- HP
- Lenovo
These companies play a crucial role in driving India’s vision of becoming a global hub for IT hardware production.
Success of Smartphone PLI Scheme
The smartphone PLI scheme has been highly successful, positioning India as the world’s second-largest manufacturer of smartphones. Government data shows that mobile phones worth Rs 4.10 lakh crore were produced in India, contributing significantly to the country’s exports. IT Minister Ashwini Vaishnaw has set a target of achieving $20 billion in smartphone exports.
Impact on India’s Economy
The PLI scheme for IT hardware has a far-reaching impact on India’s economy. It not only strengthens the manufacturing base but also promotes job creation and boosts exports. With the rapid growth of India’s IT sector, the country is moving towards self-reliance while enhancing its global competitiveness.
Conclusion
The PLI Scheme 2.0 for IT hardware marks a significant milestone in India’s journey towards becoming a self-reliant and technologically advanced nation. By supporting innovation, fostering indigenous production, and enhancing the supply chain, this initiative is transforming India’s IT landscape and boosting its position in the global market.
