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Cabinet okays PLI Scheme for IT Hardware

Thursday, 25 Feb 2021
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The Union Cabinet chaired by Prime Minister Narendra Modi has approved the Production Linked Incentive (PLI) Scheme for IT Hardware. 
The scheme proposes PLI to boost domestic manufacturing and attract large investments in the value chain of IT Hardware. The target segments under the proposed scheme include laptops, tablets, all-in-one pcs and servers. 
The scheme will extend an incentive of four percent to two percent/ one percent on net incremental sales (over base year i.e. 2019-20) of goods manufactured in India and covered under the target segment to eligible companies for a period of four years. 
The scheme is likely to benefit five major global players and 10 domestic champions in the field of IT Hardware manufacturing including laptops, tablets, all-in-one pcs, and servers. This is an important segment to promote manufacturing under Atmanirbhar Bharat as there is huge import reliance for these items at present. 
The total cost of the proposed scheme is around Rs 7,350 crore over four years, which includes an incentive outlay of Rs 7,325 crore and administrative charges of Rs 25 crore. 
The scheme will enhance development of electronics ecosystem in the country. India will be well positioned as a global hub for Electronics System Design and Manufacturing (ESDM) on account of integration with global value chains, thereby becoming a destination for IT Hardware exports. 
The scheme has an direct and indirect employment generation potential of over 1,80,000 over four years. 
The scheme will provide impetus to domestic value addition for IT Hardware which is expected to rise to 20 percent to 25 percent by 2025.
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