The Union Cabinet has approved the production linked incentive (PLI) scheme 2.0 for IT hardware with a budgetary outlay of Rs 170 billion.

The PLI scheme 2.0 covers laptops, tablets, all-in-one PCs, servers and ultra-small form factor devices. The tenure of this scheme is six years. According to the government, the expected incremental production is Rs 3.35 trillion, while the expected incremental investment is Rs 24.3 billion. The expected incremental direct employment from the scheme is 75,000.

India has become the world’s second-largest manufacturer of mobile phones. Exports of mobile phones crossed a major milestone of $11 billion this year. Building on the success of PLI scheme for mobile phones, the Union Cabinet has approved the PLI scheme 2.0 for IT hardware. 

According to Ashwini Vaishnaw, Union Minister of Communications, Electronics and Information Technology and Railways, this move will help more Indian companies grow and combine design and manufacturing to become global brands. Overall, the government expects more than 200,000 direct and indirect jobs through the scheme.

Industry reactions:

Commenting on the scheme, A. Gururaj, managing director, Optiemus Electronics Limited, said, “Today’s announcement for PLI 2.0 with the additional financial outlay for IT hardware is an excellent step for the comprehensive growth of the Indian electronics manufacturing industry. Apart from traditional categories like mobile and telecom, the special focus given to IT hardware showcases the astute vision of our government. Optiemus Electronics is manufacturing IT hardware for many reputed brands under the current PLI and now with the PLI 2.0, we are actively considering and evaluating our options to participate in this new phase of growth in electronics manufacturing. On behalf of the industry, we would like to thank the electronics minister and prime minister for this visionary step taken today.”