Foxconn, Dell now among those to aid electronics manufacturing in India

Ministry of Electronics and IT has selected four foreign companies and 10 domestic companies for the PLI scheme.

July 1, 2021

US-based Dell, Taiwan’s Foxconn and India’s Lava and Dixon Tech are among the 14 successful applications.

These companies will get incentives worth US$ 0.98bn over four years to make these products in India.

Government expects production worth US$ 21.61bn and exports worth US$ 8.05bn in four years.

PLI scheme will bring investments of US$ 337.75mn and 36,066 new jobs to be created in four years.

Electronics manufacturing in India has grown by leaps and bounds over the last five years, thanks to Prime Minister Shri Narendra Modi’s “Digital India” and “Make in India” programmes. The National Policy on Electronics 2019 envisions positioning India as a global hub for Electronics System Design and Manufacturing. Now, the government has taken another big step forward in making India a global manufacturing destination for IT hardware products.

The Ministry of Electronics and Information and Technology (MeitY) has approved 14 eligible applicants under the Production-Linked Incentive (PLI) scheme for IT hardware. These include four foreign companies—Dell, ICT (Wistron), Flextronics and Rising Stars Hi-Tech (Foxconn)—and 10 Indian firms. The local companies are Lava International Ltd, Dixon Technologies (India) Ltd, Infopower Technologies, Bhagwati (Micromax), Neolync, Optiemus, Netweb, Smile Electronics, VVDN and Panache Digilife.

The PLI scheme for IT hardware was notified on 3rd March 2021. It extends an incentive of 4% to 2% or 1% on net incremental sales over the base year of 2019-20 of goods under target segments that are manufactured in India to eligible companies for a period of four years—from 2021-22 to 2024-25. The scheme’s target segments include laptops, tablets, all-in-one personal computers and servers. The scheme proposes production-linked incentives to boost domestic manufacturing and attract large investments in the value chain of these IT hardware products.

The PLI scheme has been a huge success considering the large number of applications received from global as well as domestic companies, said Shri Ravi Shankar Prasad, Union Minister for Electronics and IT, Communications, Law and Justice. “We are optimistic and looking forward to building a strong ecosystem across the value chain and integrating with the global value chains, thereby strengthening the electronics manufacturing ecosystem in the country,” he said.

Over the next four years, the 14 selected companies are estimated to manufacture products worth more than US$ 21.61bn. Of this, the four foreign companies will account for US$ 11.37bn while the Indian firms have proposed production of US$ 10.2bn. The scheme will bring additional investment of US$ 337.75mn in IT hardware manufacturing. It will also create more than 36,000 direct jobs in next four years and three times as many indirect jobs, according to a government statement.

With demand for electronics in India projected to grow manifold by 2025, the PLI scheme will help in making India self-reliant in electronics manufacturing and give a boost to Atmanirbhar Bharat, Shri Ravi Shankar Prasad said.