In a significant boost to its IT hardware sector, the Indian government has approved applications from 27 manufacturers under the Production Linked Incentive (PLI) Scheme 2.0 for IT hardware. This initiative, endorsed by Prime Minister Narendra Modi’s Union Cabinet and first announced on May 17, 2023, aims to elevate India’s status as a global hub for IT hardware manufacturing.
The PLI Scheme 2.0, an extension of the successful mobile phone manufacturing initiative, now includes a wide array of IT hardware products such as laptops, tablets, all-in-one PCs, servers, and ultra-small form factor devices. With the approval of leading global brands like Acer, Asus, Dell, HP, and Lenovo, India is poised to witness a significant transformation in its IT hardware production landscape.
The scheme is expected to generate substantial economic benefits. It is projected to create about 2 lakh jobs, comprising 50,000 direct and 1.5 lakh indirect employment opportunities. Furthermore, it anticipates attracting an investment of 3,000 crore rupees (approximately 360 million US dollars) from these companies. In terms of production value, the scheme is expected to yield IT hardware worth 3 lakh 50 thousand crore rupees (around 42 billion US dollars) over its tenure.
Speaking to industry leaders and media, Minister of Railways, Communications and Electronics and IT Ashwini Vaishnaw revealed that 23 of the 27 approved manufacturers are ready to start manufacturing immediately. This readiness to manufacture demonstrates the preparedness and enthusiasm of global IT hardware manufacturers to tap into the Indian market.
The implementation of the PLI Scheme 2.0 marks a crucial step in India’s journey towards technological self-reliance and positions the country as a key player in the global IT hardware market. This development is not just a milestone for the Indian manufacturing sector but also a significant contributor to the nation’s economic growth and job creation.
