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Building on the success of the Production Linked Incentive scheme (PLI) for mobile phones, the Union Cabinet, chaired by the Prime Minister Narendra Modi, approved the Production Linked Incentive Scheme 2.0 for IT Hardware with a budgetary outlay Rs. 17,000 crore, more than double the budget for the scheme first cleared in 2021.
The new scheme has a predetermined duration of six years, with the government anticipating an investment exceeding Rs 2,430 crore as a component of it. The projected increase in production value could reach Rs 3.35 lakh crore, leading to the potential creation of 75,000 direct jobs. When factoring in indirect employment opportunities, the total number of jobs could reach 2 lakh.
Electronics manufacturing in India has witnessed consistent growth with 17% CAGR in the last eight years. This year it crossed a major benchmark in production – 105 billion USD (about Rs 9 lakh crore). India has become the world’s second largest manufacturer of mobile phones. Exports of mobile phones crossed a major milestone of 11 billion USD this year (about Rs 90 thousand crore).
Salient features:
- PLI Scheme 2.0 for IT hardware covers laptops, tablets, all-in-one PCs, servers and ultra small form factor devices.
- The budgetary outlay of the scheme is Rs. 17,000 crore.
- The tenure of this scheme is 6 years.
- Expected incremental production is Rs. 3.35 lakh crore.
- Expected incremental investment is Rs. 2,430 crore.
- Expected incremental direct employment is 75,000.
