Govt receives 32 applications for IT incentive scheme

The companies include Dell, Acer, Asus, Lenovo, Foxconn, and Netware

August 31, 2023

The initiative is expected to trigger incremental production worth INR 3.35 trillion

The anticipated direct employment opportunities are estimated at 75,000

The outlay for the Product Linked Incentive (PLI) 2.0 scheme was initially INR 17,000 crore

The Indian government's goal is to elevate the electronics manufacturing industry from US$ 105 billion to over US$ 300 billion through the PLI 2.0 scheme

The Indian government has received 32 applications from prominent companies, including Dell, Acer, Asus, Lenovo, Foxconn, and Netware, for the INR 17,000 crore production-linked incentive (PLI) scheme designed for IT hardware encompassing laptops, tablets, and servers, according to Union Minister Ashwini Vaishnaw.

Vaishnaw stated that this initiative is expected to trigger incremental production worth INR 3,35,000 crore, accompanied by an anticipated investment increment of INR 2,430 crore. The anticipated direct employment opportunities are estimated at 75,000.

Vaishnaw noted that the outlay for the PLI 2.0 scheme was initially INR 17,000 crore. Still, due to the overwhelming response from more than-expected proposals, India is gaining recognition as a reliable and high-talent partner in the global market.

This new scheme aims to foster domestic manufacturing of essential components within computing devices. It offers additional incentives of up to 3% for companies procuring domestically produced components like memory chips, printed circuit board assemblies, solid-state drives, and more.

Emphasising data protection, the scheme mandates beneficiaries to use firmware for servers from certified Indian or trusted foreign sources, ensuring effective device operation.

Though tech major Apple has yet to apply for the incentive scheme regarding laptop and tablet production, it is projected to commence local manufacturing of such devices in India. The application window for the PLI 2.0 scheme is set to close at midnight today.

The Indian government’s overarching goal is to elevate the electronics manufacturing industry from the present US$ 105 billion to over US$ 300 billion through the PLI 2.0 scheme, aiming to eventually rival China’s electronics manufacturing sector and eliminate the need for subsidies. The approved PLI scheme for IT hardware seeks to foster the local production of laptops, tablets, servers, and other devices over a six-year tenure.

Source: Moneycontrol

Recent Articles

India-UK FTA nears conclusion, key issues almost resolved

May 21, 2024

India and the UK are making progress toward finalizing a …

Read More

India rises to 39th on Global Travel & Tourism Index

May 21, 2024

India’s ascent to the 39th position on the World Economic …

Read More

India reaffirms import restrictions on electronics and IT goods

May 21, 2024

India has reaffirmed its restrictions on importing certain electronics and …

Read More