Indian Government Launches IT Hardware PLI 2.0 Scheme with ₹17,000 Crore Budget Allocation
The Indian government has given its nod to an enhanced Production Linked Incentive (PLI) scheme for the IT hardware sector. This IT hardware PLI 2.0 scheme has a total budget allocation of around ₹17,000 crore. This updated scheme represents a significant increase in funding compared to its predecessor.
The PLI scheme for IT hardware is set to run for a period of six years, and the government is optimistic about attracting investments worth ₹2,430 crore through the initiative. The primary objective is to foster the growth of Indian companies, enabling them to combine design and manufacturing capabilities and emerge as global brands. The government anticipates that the actual investment in the IT hardware PLI scheme will exceed expectations, similar to the success witnessed in the telecom PLI scheme.
By implementing the IT hardware PLI 2.0, the government aims to stimulate incremental production worth ₹335,000 crore, while generating approximately 75,000 direct job opportunities. The overall impact, both direct and indirect, is expected to create more than 200,000 jobs.
Following the triumph of the PLI scheme in mobile phone manufacturing, the government has now extended the initiative to the IT hardware sector. The objective is to bolster domestic manufacturing, attract substantial investments, and generate employment opportunities in the years ahead.
The Minister of State for Electronics and IT, Rajeev Chandrasekhar, expressed that the IT hardware PLI 2.0 would play a pivotal role in achieving India’s goal of a $300 billion electronics manufacturing industry, which is an integral part of the country’s trillion-dollar digital economy aspiration.
The approval of the IT hardware PLI 2.0 by the cabinet is aimed at expanding India’s production capabilities and global presence in the IT hardware, servers, and laptops value chains. The scheme provides additional incentives for companies to invest in establishing their manufacturing facilities in India, as well as for original equipment manufacturers (OEMs) incorporating Indian-designed intellectual property into their systems and products.
Minister Rajeev Chandrasekhar emphasised the government’s commitment to realising Prime Minister Narendra Modi’s vision of developing a robust electronics manufacturing ecosystem. This vision aims to position India as a significant player in the global electronics supply chain, aligning with the country’s Techade goals.