Feb 14, 2022
Total production of 1.6-lakh crore is expected over the next four years. 19 IT hardware companies have filed for the Production-Linked Incentive (PLI) scheme under the information technology hardware category. The scheme, which was notified on March 3, was open for the filing of applications till April 30.
Domestic IT Hardware Firms
According to the Ministry of Electronics and IT (MeitY), 14 companies have filed applications under “Domestic Companies.” These include Dixon, Infopower (a joint venture of Sahasra and MiTAC), Bhagwati (Micromax), Syrma Technology, Orbic, Neolync, Optiemus, Netweb, VVDN, Smile Electronics, Panache Digilife, HLBS, RDP Workstations, and Coconics. Electronics hardware manufacturers that have applied under the IT Hardware category are Dell, ICT (Wistron), Flextronics, Rising Stars Hi-Tech (Foxconn), and Lava, the statement said.
These companies are expected to expand their manufacturing operations to grow into national champion companies in IT hardware production, the statement said. The scheme is expected to lead to a total production of about 1.6-lakh crore over the next four years, MeitY said in a statement. IT hardware companies plan to produce over 1.35-lakh crore and domestic companies over 25K crores of the total production.
The PLI for IT hardware extends to eligible companies an incentive of 4% to 1-2% on the net incremental sales (over the base year of 2019-20) of goods under target segments: laptops, tablets, all-in-one personal computers (PCs) and servers that are manufactured in India for four years (2021-22 to 2024-25).
Promoting IT Hardware Exports
According to MeitY, the scheme is expected to promote exports; of the total production of 1.6-lakh crore in the next four years, more than 37% will be exported worth 60,000 crores. It’ll also bring additional investment in electronics manufacturing of 2,350 crores. The scheme is expected to generate around 37,500 direct employment opportunities in the next four years and indirect jobs nearly three times that number. The domestic value addition is expected to grow from the current 5-12% to 16-35%.
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