Modi government approves Rs 17,000 crore for IT hardware PLI

New Delhi, May 18: The Union Cabinet Wednesday approved the Production Linked Incentive Scheme 2.0 for information and technology hardware with a budgetary outlay of Rs 17,000 crore.

 

 

 

The scheme will cover laptops, tablets, all-in-one personal computers, servers, and ultra-small form factor devices, and will create an incremental investment of Rs 2,430 crore and additional direct employment for 75,000 people, Minister for Electronic and Information Technology Ashwini Vaishnaw said Wednesday during a media briefing.

 

 

 

The tenure of this scheme is six years and is expected to generate an incremental production of Rs 3.35 lakh crore. “Electronics manufacturing in India has witnessed consistent growth with 17% CAGR (compound annual growth rate) in the last 8 years. This year it crossed a major benchmark in production – 105 billion USD (about Rs 9 lakh crore),” the minister added. Vaishnaw also said large IT hardware companies had shown strong interest in establishing manufacturing in India and had in a meeting expressed “high josh (optimism)”.

 

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Asked about the tepid response to the first avatar of the scheme, the minister said the earlier version offered 2% incentives which were relatively low, whereas, in the 2.0 version, the base incentive would be 5%. “So let us look ahead,” he said.