Govt Approves Rs 17,000 Crore PLI Scheme 2.0 For IT Hardware

The Union Cabinet has approved Production Linked Incentive Scheme (PLI), PLI Scheme 2.0 for IT hardware that is likely to give a push to domestic manufacturing of laptops, PCs and ultra-small devices.

The PLI Scheme 2.0 for IT hardware is projected to create an estimated 75,000 jobs. ( Image Source :Getty )

The Union Cabinet on Wednesday approved the Production Linked Incentive Scheme (PLI) scheme for IT hardware with a budgetary outlay of Rs 17,000 crore, Union Minister Ashwini Vaishnaw said, according to a report by news agency PTI.

This PLI scheme is being called PLI Scheme 2.0 and it intends to give a push to the domestic manufacturing of laptops, tablets, all-in-one personal computers (PCs), servers and ultra-small form factor devices. The scheme has a tenure of six years and is expected to bring about incremental production worth Rs 3.35 lakh crore, according to a report by Money Control.

The PLI Scheme 2.0 for IT hardware is projected to attract an incremental investment of Rs 2,430 crore, fostering technological advancements and promoting self-reliance in the IT sector. The scheme is also expected to generate significant direct employment opportunities, with an estimated 75,000 new jobs being created, the report added.

The country crossed the landmark of $10 billion in mobile phone exports and $105 billion in overall electronics manufacturing in 2022, say media reports. Now, its aim is to replicate the success of promoting domestic smartphone and telecom equipment production in the manufacturing of devices such as laptops, PCs and other advanced computers.

"The PLI Scheme 2.0 will accelerate the domestic IT Hardware manufacturing ecosystem in India and enable businesses to grow beyond regional markets. It will enhance India’s position as a global technology hub for companies to drive India-designed IP and explore new growth avenues. Following the PLI Scheme’s success in establishing a robust, globally recognised foundation for smartphone manufacture, PLI 2.0 will strengthen India’s electronic and IT hardware industry further and its presence in the global value chain," reacting to the Centre's approval of PLI 2.0, Rajen Vagadia, VP, Qualcomm India Pvt Ltd and President, Qualcomm India and SAARC, told ABP Live in a statement.

The government is expecting that the new version of the PLI scheme will ramp up the total electronics manufacturing in the country to $300 billion per year.