All you wanted to know about Production Linked Incentive Scheme 2.0 for IT Hardware

Cabinet approves six-year programme with budgetary outlay of Rs. 17,000 crore

GN Bureau | May 17, 2023


#Business   #Economy   #technology   #hardware   #PLI   #cabinet  
(Illustration: Ashish Asthana)
(Illustration: Ashish Asthana)

The union cabinet on Wednesday approved the Production Linked Incentive (PLI) Scheme 2.0 for IT Hardware with a budgetary outlay Rs. 17,000 crore.

Context:
* Electronics manufacturing in India has witnessed consistent growth with 17% CAGR in last 8 years. This year it crossed a major benchmark in production – 105 billion USD (about Rs 9 lakh crore)

* India has become the world’s second largest manufacturer of mobile phones. Exports of mobile phones crossed a major milestone of 11 billion USD this year (about Rs 90 thousand crore)

* The global electronics manufacturing ecosystem is coming to India, and India is emerging as a major electronics manufacturing country

* Building on the success of Production Linked Incentive scheme (PLI) for mobile phones, the Union Cabinet today approved PLI Scheme 2.0 for IT hardware

Salient features:

* PLI Scheme 2.0 for IT hardware covers laptops, tablets, all-in-one PCs,   servers and ultra small form factor devices

* The budgetary outlay of the scheme is Rs. 17,000 crore
* The tenure of this scheme is 6 years
* Expected incremental production is Rs. 3.35 Lakh crore
* Expected incremental investment is Rs. 2,430 crore
* Expected incremental direct employment is 75,000

Significance:

 * India is emerging as a trusted supply chain partner for all global majors. Large  IT hardware  companies   have  shown keen interest in establishing manufacturing facilities in India. This is further supported by strong IT services industry having good demand within the country.

* Most majors would like to supply domestic markets within India from a facility situated in India as well as make India an export hub.

Comments

 

Other News

India lost Rs 52,000 crore to cyber fraud in five years: DoT

India has lost more than Rs 52,000 crore to cyber fraud over the last five years, officials have revealed. Out of approximately 60 lakh cyber fraud complaints received, more  than 3,000 cases have been resolved and six cyber fraud setups have been busted.   On the occ

India must not wait for its own Ella

In many Indian cities, children learn to wear masks before they are old enough to understand why. That reality should alarm us far more than it does.   In 2020, nine-year-old Ella Adoo Kissi Debrah became the first person in the world to have air pollution officially recognized a

An ode to the cradle of humankind

The Alphabets of Africa: Poems By Abhay K. Vintage Classics, 280 pages, ₹499.00   Abhay K

Ahmedabad district railway network to be expanded

The Cabinet Committee on Economic Affairs, chaired by prime minister Narendra Modi, on Wednesday approved the Ahmedabad (Sarkhej) – Dholera Semi High-Speed Double Line project of Ministry of Railways with total cost of Rs. 20,667 crore (approx.). It will be Indian Railways 1st semi high-speed project

Indian Ocean more contested than ever: Western Naval Command Chief

The Indian Ocean is becoming increasingly contested and strategically significant as the Indo-Pacific emerges as the defining geopolitical theatre of the 21st century, Vice Admiral Krishna Swaminathan, Flag Officer Commanding-in-Chief of the Western Naval Command, has said.   Spe

Why the judiciary needs much more than four more judges

India has a particular form of governance theatre: the bold declaration that appears to be action but is actually a way of avoiding action. The Union Cabinet on May 5 approved a Bill to increase the sanctioned strength of the Supreme Court from 34 to 38. The decision has been touted as a step toward judici


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter