India’s Electronics manufacturing sector has experienced significant growth in recent years, positioning the country as a major player in the Global Market. To further enhance this growth, the Union Cabinet, under the leadership of Prime Minister Shri Narendra Modi, has approved the Production Linked Incentive Scheme 2.0 for IT Hardware.
With a budgetary outlay of Rs. 17,000 crore, this scheme aims to promote the manufacturing of various IT hardware products, including laptops, tablets, all-in-one PCs, servers, and ultra-small form factor devices.
The success of the previous Production Linked Incentive scheme for mobile phones has paved the way for this new initiative. With India already becoming the world’s second-largest manufacturer of mobile phones and mobile phone exports reaching an impressive milestone of $11 billion (approximately Rs. 90,000 crore), the country has established itself as an attractive destination for electronics manufacturing.
Under the PLI Scheme 2.0 for IT hardware, the Government expects significant incremental production worth Rs. 3.35 lakh crore, along with an incremental investment of Rs. 2,430 crore. This scheme is set to run for a period of six years, during which it is projected to generate around 75,000 direct employment opportunities.
The significance of this scheme extends beyond the immediate economic benefits. India is emerging as a trusted supply chain partner for Global Technology majors, and many leading IT Hardware companies have expressed keen interest in establishing manufacturing facilities within the country. Moreover, with a strong IT services industry and a thriving domestic demand, these companies also view India as a potential export hub.
This move not only strengthens India’s position as a Global electronics manufacturing hub but also aligns with the Government’s vision of Atmanirbhar Bharat (self-reliant India). By incentivizing the production of IT hardware domestically, the country aims to reduce import dependence and boost local manufacturing capabilities. The PLI Scheme 2.0 for IT Hardware marks another significant step towards achieving these objectives and solidifying India’s position as a major player in the Global electronics market.
