PLI
SCHEME FOR IT HARDWARES - ECONOMY
News: Government receives 32 applications
under PLI scheme for IT hardware
What's
in the news?
●
The Government said that it has received
32 applications from laptop manufacturers including Dell, HP, Foxconn,
Flextronics and Optiemus, under the production linked incentive (PLI) scheme
for IT hardware., while 80 companies have registered for the scheme.
PLI
2.0 for IT Hardware:
Objective:
●
Scale up domestic manufacturing
capability.
●
Increase import substitution and Generate
employment.
Budget - ₹17,000 crore
Tenure
- 6
years (2023-24 to 2029-30)
Nodal
Ministry: Union Minister for IT and Telecom
Coverage:
●
PLI Scheme 2.0 for IT hardware covers laptops, tablets, all-in-one PCs, servers
and ultra-small form factor devices.
Incentives
provided:
●
Incentives Calculated based on incremental
sales.
●
Range
from 1% to 20% depending on the industry.
●
In some sectors such as advanced chemistry
cell batteries, textile products and the drone industry, the incentive is on
the basis of sales, performance and local value addition done over the period
of five years.
Significance:
●
Expected incremental production of ₹3.35
lakh crore.
●
Expected incremental investment of ₹2,430
crore.
●
Create incremental direct employment for
75,000 people during the scheme period.
Go
back to basics:
●
India has become the world's second-largest manufacturer of mobile phones. Exports of
mobile phones crossed a major milestone of $11 billion (about ₹90 thousand
crore) in March 2023.
●
The government in February 2021 approved
the PLI scheme for IT hardware, covering the production of laptops, tablets,
All-in-One PCs and servers with an outlay of ₹7,350 crore.
●
PLI Scheme, launched in April 2020 with a
focus on mobile phone production, has given a massive boost to electronics
manufacturing in the country.
Sectors
targeted in PLI:
●
Initial Targeted Industries was Mobile and
allied Component Manufacturing, Electrical Component Manufacturing, and Medical
Devices.
●
Now expanded to Automobile and auto
components, Electronics and IT hardware, Telecom, Pharmaceuticals, Solar
modules, Metals and mining, Textiles and apparel, White goods, Drones, Advanced
chemistry cell batteries and other sectors as well.