Cabinet Approves Production Linked Incentive Scheme 2.0 for IT Hardware

Cabinet Approves Production Linked Incentive Scheme 2.0 for IT Hardware with Rs 17,000 Crore Budget

The Indian Cabinet, under the leadership of Prime Minister Narendra Modi, has announced its approval for the Production Linked Incentive (PLI) Scheme 2.0 for IT Hardware. The scheme, which has been allocated a budgetary outlay of Rs 17,000 crore, aims to foster growth in the electronics manufacturing sector within the country.

Growth in Indian Electronics Manufacturing Spurs the Launch of PLI Scheme 2.0

Over the past eight years, the electronics manufacturing industry in India has exhibited remarkable progress, boasting a compound annual growth rate (CAGR) of 17 percent. This year, the sector reached a significant milestone by surpassing the production benchmark of USD 105 billion (approximately Rs 9 lakh crore). Taking this impressive growth into account, the Union Cabinet has approved the PLI Scheme 2.0 for IT Hardware to further propel the industry's advancement.

The PLI Scheme 2.0 for IT hardware encompasses a wide range of products, including laptops, tablets, all-in-one PCs, servers, and ultra-small form factor devices. Union Minister for IT and Telecom, Ashwini Vaishnaw, stated that the scheme has a budgetary outlay of Rs 17,000 crore and will remain active for a period of six years.

The implementation of this scheme is anticipated to drive incremental production worth Rs 3.35 lakh crore, stimulate additional investments amounting to Rs 2,430 crore, and generate direct employment opportunities for an estimated 75,000 individuals during the scheme's tenure.

Previously, in February 2021, the government had approved the PLI scheme for IT hardware with a budgetary allocation of Rs 7,350 crore. However, industry players had requested an increase in the outlay for this segment, leading to the development of the enhanced PLI Scheme 2.0.

India's successful implementation of the Production Linked Incentive scheme for mobile phones, launched in April 2020, has significantly bolstered electronics manufacturing in the country. As a result, India has become the world's second-largest manufacturer of mobile phones, with mobile phone exports exceeding USD 11 billion (approximately Rs 90 thousand crore) in March.

With the introduction of the PLI Scheme 2.0 for IT hardware, India aims to further attract the global electronics manufacturing ecosystem, positioning itself as a major player in the industry. This initiative signifies the government's commitment to fostering an environment conducive to technological innovation and economic growth.

ThinkwithNiche news Conclusion:

The approval of the Production Linked Incentive Scheme 2.0 for IT Hardware by the Indian Cabinet reflects the government's commitment to boosting electronics manufacturing in the country. With a budgetary outlay of Rs 17,000 crore, the scheme aims to drive growth and investment in the IT hardware sector, covering products such as laptops, tablets, servers, and more. By leveraging the success of the PLI scheme for mobile phones, India is positioning itself as a major player in the global electronics manufacturing ecosystem.

Important News Tags and Headlines for Readers

Growth in Electronics Manufacturing Spurs Approval of PLI Scheme 2.0

Cabinet Grants Approval with a Budgetary Outlay of Rs 17,000 Crore

PLI Scheme 2.0 Covers a Wide Range of IT Hardware Products

Scheme Expected to Drive Incremental Production, Investment, and Employment

Success of PLI Scheme for Mobile Phones Boosts Electronics Manufacturing in India

India Becomes the World's Second-Largest Mobile Phone Manufacturer

Mobile Phone Exports Cross Major Milestone of USD 11 Billion

India Emerges as a Major Electronics Manufacturing Country

Global Electronics Manufacturing Ecosystem Flocks to India

PLI Scheme 2.0 Reinforces India's Commitment to Technological Innovation and Economic Growth