Union Cabinet approves PLI Scheme 2.0 for IT hardware

New Delhi: The Union Cabinet, led by Prime Minister Narendra Modi has granted approval for the introduction of the Production-Linked Incentive (PLI) Scheme 2.0 for IT Hardware, said the Ministry of Electronics & IT in a statement on Tuesday. This strategic move aims to bolster India's manufacturing capabilities, promote the localisation of components, and propel exports, all in line with the vision of Atmanirbhar Bharat (Self-Reliant India). The scheme was officially notified on May 29 and the application window for PLI Scheme 2.0 for IT Hardware will open on June 1, the statement added.

PLI Scheme 2.0 for IT Hardware to impact manufacturing ecosystem

The PLI Scheme 2.0 for IT Hardware is expected to have a profound impact on the manufacturing ecosystem by encouraging the domestic production of components and sub-assemblies, said the statement. Further, the statement added that it provides an extended duration to develop a robust supply chain within the country. The revised scheme offers increased flexibility and options for applicants, linking incentives to incremental sales and investment thresholds to further incentivise growth. Notably, the scheme encompasses semiconductor design, IC manufacturing, and packaging as incentivised components, acknowledging their importance in the IT hardware sector, the statement added.

Budget of Rs 17,000 cr allocated to PLI Scheme 2.0 for IT Hardware

With a budgetary outlay of Rs 17,000 crore, the PLI Scheme 2.0 for IT Hardware is projected to spur significant production, reaching approximately Rs 3.35 lakh crore. The scheme is expected to attract an additional investment of Rs 2,430 crore in the electronics manufacturing industry, while generating approximately 75,000 direct job opportunities.

PLI Scheme 2.0 for IT Hardware will improve rate of electronics manufacturing

By focusing on the manufacturing of laptops, tablets, all-in-one PCs, servers, and ultra-small form factor (USFF) devices, the PLI Scheme 2.0 for IT Hardware aims to contribute substantially towards achieving a turnover of approximately USD 300 billion in electronics manufacturing by 2025-26. Existing approved applicants of the previous PLI scheme will also be eligible to apply under PLI 2.0, ensuring continuity for those already engaged in the programme.

3 categories of applicants will be considered

Under the scheme, three categories of applicants will be considered: global companies, hybrid companies (a combination of global and domestic companies), and domestic companies. This inclusive approach encourages the participation of both domestic and global players, fostering a robust and competitive manufacturing ecosystem.

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