Prime Minister Narendra Modi’s Union Cabinet authorized the Production Linked Incentive Scheme – 2.0 for IT hardware, building on the success of the earlier scheme for mobile phones, laptops, and all PCs.
The Production Linked Incentive (PLI) Scheme for the National Programme on High-Efficiency Solar PV Modules is being implemented by the Ministry of New and Renewable Energy, Government of India.
The PLI Scheme 2.0 for IT Hardware is expected to support the growth and fortification of the manufacturing ecosystem by enhancing the localization of parts and subassemblies and providing more time to establish the supply chain locally.
To further encourage growth, the scheme is linked to additional sales and investment thresholds and offers applicants more freedom and options. Additionally included as incentive components of the PLI Scheme 2.0 for IT Hardware are semiconductor design, IC production, and packaging.
The Scheme provides a 5% incentive on net incremental sales of goods manufactured in India for six years, covering the target segment of laptops, tablets, all-in-one PCs, servers, and Ultra Small Form Factors, based on eligibility criteria.
Purpose Of the PLI Scheme
The PLI 2.0 program endeavours to cultivate the nation’s hardware product manufacturing ecosystem and component and sub-assembly supply chain. The plan will provide producers more flexibility and encourage growth, according to the Ministry of Electronics and Information Technology.
Over six years, the initiative will provide eligible enterprises with an incentive of around five percent of incremental sales of goods manufactured in India.
Target markets for the program include Ultra Small Form Factor (USFF), servers, laptops, tablets, and all-in-one PCs. The scheme’s budget, Rs 17,000 crore, is more than twice as much as that of its 2021 iteration, which only offered a 2 percent incentive.
PLI Scheme 27 Vendors Approval
The PLI Scheme 2.0 for IT Hardware has been approved by the Indian government with the goal of attracting ₹2,430 crore in electronics manufacturing and producing a total production value of ₹3.35 lakh crore. By 2025–2026, this initiative is expected to create 75,000 employment and contribute to a USD 300 billion turnover.
Applications from 27 manufacturers of computer hardware have been accepted. India will be the manufacturing location for IT gear from well-known names like Acer, Asus, Dell, HP, Lenovo, etc. The following are the anticipated results of this approval over the program’s duration:
- Total employment: about 2 lakhs
- Approximately 50,000 (direct) and 1.5 lakh (indirect)
- The output value of IT gear is 3 lakh 50 thousand crore rupees or 42 billion US dollars.
- Investment made by businesses: 360 million US dollars, or 3,000 crore rupees.
“23 out of 27 approved applicants are ready to start manufacturing on day zero,” Minister of Railways, Communications, and Electronics and IT Shri Ashwini Vaishnaw announced to business leaders and the media.
PLI Scheme 2.0 Objectives for IT Hardware
The PLI program is a good step forward for the Indian IT hardware market. It is anticipated to support the industry’s expansion and increased competitiveness. Additionally, the program will contribute to India’s increased appeal as a location for IT hardware investment.
- An increase in the production of IT gear domestically.
- Employment growth in the IT hardware industry.
- A boost to the economic performance of India.
- Flexibility for qualified IT Hardware PLI 1.0 applicants
- Less reliance on IT hardware imports.
Eligibility For PLI Scheme Applicant
The option to switch to a new PLI scheme is available to domestic and worldwide firms, hybrid PLI applicants, and existing PLI applicants. Some eligibility criteria for different applicants with a Minimum investment threshold are here:
- International Businesses 500 crore rupees, or US$61 million
- A new category of hybrid companies: INR 250 crore, or $30 million US
- Domestic businesses Twenty crore rupees (US$2.4 million)
- An expectation of flexibility in the investing criterion for each year
- The investment made by the component manufacturer may be regarded as the applicant’s investment.
Approved Companies PLI Scheme list
27 approved companies for the PLI Scheme are discussed below.
- Neolync Tele Communications Private Limited
- Rising Stars Hi-Tech Private Limited
- Hangsine Techmosof Private Limited
- Bhagwat Products Limited
- Flextronics Technologies (India) Private Limited
- Padget Electronics Private Limited
- INP Technologies Private Limited
- Smile Electronics Limited
- Dell International Services India Private Limited
- Goodworth Electronics Private Limited
- HP India Sales Private Limited
- Genus Electronics Limited
- SOJO Manufacturing Services (AP) Private Limited
- Netweb Technologies India Limited
- Kaynes Electronics Manufacturing Private Limited
- VVDN Technologies Private Limited
- Plumage Solutions Private Limited
- Panache Digife Limited
- Riot LabzPvt Ltd
- Sahasra Electronic Solutions Limited
- Syrma SGS Technology Ltd.
- ITI Ltd
- Mega Networks Private Limited
- HLBS Tech Private Limited
- RDP Workstations Private Limited
- Optiemus Telecommunication Private Limited
- Sancraft Industries Private Limited
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