Incentivised Manufacturing Push: Twenty-Seven Firms, Including Dell, HP, Foxconn Granted Approval Under New IT-Hardware PLI Scheme

Arun Kumar Das

Nov 19, 2023, 09:09 AM | Updated 08:20 AM IST

Laptop Manufacturing. (Representative image)
Laptop Manufacturing. (Representative image)

The government on Saturday (18 November) granted approval for 27 companies, including Dell, HP, Flextronics, and Foxconn under the production-linked incentive (PLI) scheme for IT hardware.

The scheme, considered to be very significant for IT hardware manufacturing covers laptops, tablets, PCs, servers and ultra-small form factor devices, and is expected to fuel incremental investments of about Rs 3,000 crore.

Addressing the industry and media, Union Electronics and IT Minister Ashwini Vaishnaw said the Union Cabinet, led by Prime Minister Narendra Modi, has approved 27 companies for the PLI scheme for IT hardware.

The nod to the applicants comes at a time when India is wooing IT hardware players with policy sweeteners and incentive schemes, making a determined push to position itself as a global powerhouse for hi-tech manufacturing.

"I am happy to announce that 27 companies have been approved for the PLI IT hardware scheme. About 95 per cent of these.. 23 companies are ready to start their manufacturing from day-zero," Vaishnaw said.

Four companies will start their production in the next 90 days.

"These 27 applications will lead to investments of about Rs 3,000 crore. The most important thing is that the value chain is shifting to India," the Minister added.

The approvals will position India as a big force in manufacturing of IT hardware, encompassing PCs, servers, laptops, and tablets, Vaishnaw said.

Among the big names that have been granted approval under the IT hardware scheme are Dell, Foxconn, HP, Flextronics, VVDN, and Optiemus. Other applicants that have received the green signal include Padget Electronics, SOJO Manufacturing Services, Goodworth, Neolync, Syrma SGS, Mega Networks, Panache Digilife, and ITI Ltd, among others.

To a question on the absence of certain large names from the list, the Minister said that some are evaluating and making their plans and "it is just the question of time". He, however, did not take specific names.

The scheme will lead to additional production of Rs 3.5 lakh crore and create direct employment for 50,000 people and indirect employment for 1.5 lakh people, the Minister said.

The PLI scheme 2.0 for IT Hardware was approved by the Union Cabinet on 17 May 2023, with an aim to enhance India's manufacturing prowess and spur export.

The scheme aims to bolster the manufacturing of laptops, tablets, personal computers, servers and ultra-small form factor devices.

With complex work now beginning to happen in India, there is an increasing level of value addition from here, Vaishnaw said.

The PLI scheme, which was launched by the Union government, offers a production linked incentive to boost domestic manufacturing, attract large investments in mobile phone manufacturing and specified electronic components, including assembly, testing, marking and packaging units. This scheme covers laptops, tablets, all-in-one PCs, servers and ultra-small form factor devices.

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