The government has notified the production linked incentive (PLI) scheme 2.0 for IT hardware with a budgetary outlay of Rs 170 billion. The Ministry of Electronics and Information Technology (MeitY) has invited applications for incentives starting June 1, 2023. The scheme was approved by the Union Cabinet on May 17, 2023, as part of the government’s efforts to enhance India’s manufacturing capabilities and promote self-reliance.
The PLI scheme 2.0 for IT hardware is expected to result in the broadening and deepening of the manufacturing ecosystem by encouraging the localisation of components and sub-assemblies and allowing for a longer duration to develop the supply chain within the country. The scheme will promote large-scale manufacturing in laptops, tablets, all-in-one PCs, servers and ultra-small form factor (USFF) devices and contribute significantly to achieving electronics manufacturing turnover of approximately $300 billion by 2025-26. Additionally, the scheme provides increased flexibility and options for applicants, and is tied to incremental sales and investment thresholds to further incentivise growth. Furthermore, semiconductor design, integrated circuit manufacturing, and packaging are also included as incentivised components of the PLI scheme.
The scheme is expected to lead to a total production of about Rs 3.35 trillion, bring an additional investment of Rs 24.30 billion in electronics manufacturing and will lead to the generation of 75,000 additional direct jobs.
Approved applicants of existing PLI will be allowed to apply under PLI 2.0. The scheme has three category of applicants, namely global companies, hybrid (global/domestic) companies and domestic companies.
