PRODUCTION LINKED INCENTIVE SCHEME - ECONOMY
News: MeitY invites applications for incentives under PLI 2.0 for IT Hardware
What is in the news?
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The Union Cabinet,
chaired by the Prime Minister, had given approval to introduce the Production-Linked Incentive (PLI) Scheme
2.0 for IT Hardware for Enhancing India’s Manufacturing Capabilities and
Enhancing Exports – Atma Nirbhar Bharat.
Key takeaways from the news:
About:
●
The PLI Scheme 2.0 for IT
Hardware approved with a budgetary outlay of ₹ 17,000 crore.
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The scheme has three
categories of applicants, namely global companies, hybrid (global/domestic)
companies and domestic companies.
Time period:
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6
years from 2023 to 2029.
Incentives:
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The Scheme shall extend
an average incentive of around 5% on net
incremental sales (over base year) of goods manufactured in India and
covered under the target segment.
●
Target
segments:
○ Laptops
○ Tablets
○ All-in-One
PCs
○ Servers
and Ultra Small Form Factor.
Investment creation:
●
The scheme is expected to
lead to total production of about ₹ 3.35 lakh crore, bring an additional
investment of ₹ 2,430 crore in electronics manufacturing and will lead to
generation of 75,000 additional direct jobs.
Coverage:
●
Semiconductor design, IC
manufacturing, and packaging are also included as incentivised components of
the PLI Scheme 2.0 for IT Hardware.
Objectives:
●
broadening and deepening
of the manufacturing ecosystem.
●
encouraging the localization
of components and sub-assemblies.
●
develop the supply chain
within the country.