Connect with us

Headlines of the Day

PLI for IT hardware

Government of India’s goal is to make India a significant design and manufacturing hub in the Global Value Chain for Electronics as part of its AtmaNirbhar Bharat Economic policies. As part of this, we are broadening and deepening our Electronics Eco-system. In the post COVID-19 global business and trade environment, global companies are looking to diversify their manufacturing locations to mitigate the supply chain risks.

National Policy on Electronics 2019 (NPE 2019) envisions positioning India as a global hub for Electronics System Design and Manufacturing (ESDM) by encouraging and driving capabilities in the country for developing core components, including chipsets, and creating an enabling environment for the industry to compete globally.

Production Linked Incentive Scheme (PLI) for IT Hardware was notified on 03.03.2021. This Scheme extends an incentive of 4% to 2%/ 1% on net incremental sales (over base year of FY2019-20) of goods under target segments that are manufactured in India to eligible companies, for a period of four years (FY2021-22 to FY2024-25). The target IT hardware segments under the Scheme include Laptops, Tablets, All-in-One Personal Computers (PCs) and Servers. Incentives are applicable under the scheme from 01.04.2021. A total of 14 companies have been approved under the PLI Scheme. List of companies approved under the PLI Scheme for IT Hardware is at Annexure.

In order to boost electronics manufacturing in the country and incentivize large investments in the electronics value chain, PLI Scheme for IT Hardware was notified on 03.03.2021. Over the next 4 years, the 14 approved companies under the Scheme are expected to lead to total production of about ₹ 1,60,000 crore. Out of the total production of ₹ 1,60,000 crore in the next 4 years, more than 37% is expected to be contributed by exports of the order of ₹ 60,000 crore. The scheme is expected to bring an additional investment in electronics manufacturing to the tune of ₹ 2,500 crore. Generation of 36,066 additional direct jobs and three times indirect employment is expected under the PLI Scheme for IT Hardware.

The total budget outlay approved by the union cabinet for PLI scheme for IT Hardware scheme is INR 7350 Crore.

CT Bureau

Click to comment

You must be logged in to post a comment Login

Leave a Reply

Copyright © 2024 Communications Today

error: Content is protected !!