PRODUCTION LINKED INCENTIVE SCHEME (PLI) FOR IT HARDWARE

Subject : Economy

Context : A total of 19 companies have filed their application under the Production Linked Incentive Scheme (PLI) for IT Hardware.

Concept :

Production Linked Incentive Scheme (PLI) for IT Hardware was notified on 03.03.2021.
The PLI Scheme extends an incentive of 4% to 2%/ 1% on net incremental sales (over base year of FY 2019-20) of goods under target segments that are manufactured in India to eligible companies, for a period of four years (FY 2021-22 to FY 2024-25).
The target IT hardware segments under the proposed Scheme include Laptops, Tablets, All-in-One Personal Computers (PCs) and Servers.
The scheme proposes production linked incentives to boost domestic manufacturing and attract large investments in the value chain of these IT Hardware products.

Benefits:

Over the next 4 years, the Scheme is expected to lead to total production of about INR 1,60,000 crore. Out of the total production, IT Hardware companies have proposed a production of over INR 1,35,000 crore, and Domestic Companies have proposed a production of over INR 25,000 crore.
The scheme is expected to promote exports significantly. Out of the total production of INR 1,60,000 crore in the next 4 years, more than 37% will be contributed by exports of the order of INR 60,000 crore.
The scheme will bring additional investment in electronics manufacturing to the tune of INR 2,350 crore.
The scheme will generate approximately 37,500 direct employment opportunities in next 4 years along with creation of additional indirect employment of nearly 3 times the direct employment.
Domestic Value Addition is expected to grow from the current 5-12% to 16-35%.