PLI scheme for IT Hardware

In News 

Recently, Some companies have applied to avail the benefits of the government’s Production-Linked Incentive (PLI) scheme for manufacturing IT hardware in India.

PLI for IT Hardware

• It was notified on 03.03.2021. 
• The PLI Scheme extends an incentive of 4% to 2% and 1% on net incremental sales (over the base year of FY 2019-20) of goods under target segments that are manufactured in India to eligible companies, for four years (FY 2021-22 to FY 2024-25).
• The scheme is expected to lead to total production worth Rs 1.6 lakh crore. 
  • Out of the total, IT hardware companies have proposed production worth over Rs 1.35 lakh crore, and domestic companies have proposed output of more than Rs 25,000 crore

• Beneficiaries: IT hardware sector such as laptops, tablets, all-in-one PCs and servers.
  • It will benefit five major global players and ten domestic champions in the field of IT hardware.

Significance 

• The scheme will facilitate investments worth ?2,350 crores in India’s electronics manufacturing space and generate 37,500 direct employment opportunities.
• It will enable domestic value addition in IT hardware to rise from 5-12% at present to 16-35 % by 2025.
• It will reduce imports and enhance the development of the electronics ecosystem in the country.
  • Currently, 80% of the laptop and tablet demand in the country is met through imports. 
• The goal is to make India more compliant with the World Trade Organisation (WTO) commitments and also make it non-discriminatory and neutral with respect to domestic sales and exports.

Source: LM