The Indian government, under the leadership of Prime Minister Narendra Modi, has given its nod to the Production Linked Incentive Scheme 2.0 (PLI Scheme 2.0) for IT Hardware. With a budget of Rs 17,000 crore, this scheme aims to enhance the manufacturing of IT hardware within the country.

This move comes as India’s electronics manufacturing industry continues to grow steadily, achieving a remarkable compound annual growth rate of 17% over the past eight years and reaching a production milestone of $105 billion (approximately Rs 9 lakh crore) this year.

According to Union Minister for IT and Telecom, Ashwini Vaishnaw, the PLI Scheme 2.0 for IT hardware will encompass a wide range of products, including laptops, tablets, all-in-one PCs, servers, and ultra-small form factor devices. The scheme will run for six years and has been allocated a budget of Rs 17,000 crore.

The implementation of the PLI Scheme 2.0 is expected to result in incremental production worth Rs 3.35 lakh crore, an additional investment of Rs 2,430 crore, and the creation of approximately 75,000 direct employment opportunities throughout the scheme’s duration. This expansion follows the previous approval of a similar scheme for IT hardware in February 2021, which had an outlay of Rs 7,350 crore.

Industry players in the IT hardware sector have been advocating for an increased outlay for the PLI Scheme, recognizing the immense potential for growth and the need for government support.

The original PLI Scheme, initially focused on mobile phone production, played a pivotal role in strengthening electronics manufacturing in India. As a result, India has emerged as the world’s second-largest manufacturer of mobile phones, with mobile phone exports surpassing USD 11 billion (approximately Rs 90,000 crore) in March.

The successful implementation of the PLI Scheme has garnered attention from the global electronics manufacturing ecosystem, positioning India as a significant player in the industry.

With the approval of PLI Scheme 2.0 for IT hardware, the government aims to build upon the achievements of the previous scheme and further nurture the growth of IT hardware manufacturing in the country.