Modi Cabinet Approves Rs 7,350 Crore PLI Scheme For Domestic Manufacturing Of Laptops,Tablets

Modi Cabinet Approves Rs 7,350 Crore PLI Scheme For Domestic Manufacturing Of Laptops,TabletsWorkers at a hardware factory - representative image. 

The Narendra Modi led Union Cabinet has approved a production Linked Incentive (PLI) Scheme for IT Hardware. The scheme proposes production linked incentive to boost domestic manufacturing and attract large investments in the value chain of IT Hardware. The Target Segments under the proposed Scheme include Laptops, Tablets, All-in-One PCs and servers.

The Scheme shall, extend an incentive of 4 per cent to 2 per cent or 1 per cent on net incremental sales of goods manufactured in India and covered under the target segment, to eligible companies, for a period of four years.

The scheme is likely to benefit five major global players and ten domestic champions in the field of IT Hardware manufacturing including Laptops, Tablets, All-in-One PCs, and Servers.

The total cost of the proposed scheme is approximately Rs 7,350 crore over 4 years, which includes an incentive outlay of Rs 7,325 crore and administrative charges of Rs 25 crore.

The scheme is expected to enhance the development of electronics ecosystem in the country. India will be well positioned as a global hub for Electronics System Design and Manufacturing (ESDM) on account of integration with global value chains, thereby becoming a destination for IT Hardware exports.

The scheme has an employment generation potential of over 1,80,000 (direct and indirect) over 4 years.

The Scheme will provide impetus to Domestic Value Addition for IT Hardware which is expected to rise to 20 per cent to 25 per cent by 2025.