27 global IT giants to get 5% incentive for ‘make in India’ under PLI scheme: Minister : The Tribune India

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27 global IT giants to get 5% incentive for ‘make in India’ under PLI scheme: Minister

27 global IT giants to get 5% incentive for ‘make in India’ under PLI scheme: Minister

Union Minister Ashwini Vaishnaw in New Delhi on Saturday. ANI



Tribune News Service

New Delhi, November 18

Building on the success of Production-Linked Incentive scheme (PLI) for mobile phones, the government today announced that it has selected 27 companies, including giants Acer, Asus, Dell, Foxconn, HP and Lenovo, for incentives to make computer hardware in India.

50K direct jobs

  • “Investment by 27 shortlisted companies would be about Rs 3,000 crore and the value of hardware would be close to Rs 3,50,000 crore,” Union Minister for Electronics and Information Technology Ashwini Vaishnaw said on Saturday
  • He added 23 of the approved applicants were ready to start manufacturing. This development would result in direct employment for 50,000 individuals and indirect opportunities for 150,000 more

“Investment by companies would be about Rs 3,000 crore and value of hardware would be about $42 billion (approximately 3,50,000 crore),” Union Minister for Electronics and Information Technology (MeitY) Ashwini Vaishnaw said on Saturday. Contrasting the previous scheme, which offered incentives of up to 2 per cent of net sales for domestically manufactured goods, the revised version substantially elevates the basic incentive to over 5 per cent. Spanning six years, the scheme

initiative targets the augmentation of domestic manufacturing in laptops, tablets, all-in-one PCs, servers, and ultra-small form factor devices.

Addressing industry captains, Vaishnaw informed that “23 out of 27 approved applicants are ready to start manufacturing”. This development would result in direct employment for 50,000 individuals and indirect opportunities for 150,000 more.

The revamped PLI Scheme 2.0, which was approved in May, aims to catalyse local manufacturing of smaller components in computing devices. It does so by introducing additional incentives, reaching up to 3 per cent, for companies procuring domestically-produced components like memory chips, printed circuit board assemblies, solid-state drives, chassis, power supply components, and adaptors.

According to the Ministry of Electronics and Information Technology, the industry grapples with challenges, experiencing a setback of approximately 8.5 per cent to 11 per cent due to inadequate infrastructure, domestic supply chain and logistics, high financial costs, power quality limitations, limited industry focus on research and development, and skill development gaps.

The overarching goal of the National Policy on Electronics, 2019, is to establish India as a paramount hub for electronics system design and manufacturing (ESDM).

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