In a significant move to promote local manufacturing of IT hardware, the Union Cabinet of India has approved a Rs 17,000 crore-incentive scheme. The initiative aims to bolster the production of tablets, laptops, servers, all-in-one PCs, and ultra-small form factor devices within the country. The scheme, known as the Production Linked Incentive (PLI) Scheme 2.0 for IT hardware, is projected to generate an incremental production worth Rs 3.35 lakh crore over a period of six years.
IT and Telecom Minister Ashwini Vaishnaw announced that the government’s incentive has already garnered interest from companies with high sales volumes, with even Apple, the renowned iPad maker, seriously considering participating in the scheme. This development highlights the potential attractiveness of the Indian market for global technology companies.
The PLI Scheme 2.0 for IT hardware builds upon a previous initiative introduced in 2021, which did not achieve the anticipated traction. However, the government’s renewed efforts and additional incentives are expected to stimulate domestic manufacturing and position India as a key player in the global IT hardware market.
By encouraging the local production of IT hardware, the Indian government aims to reduce the country’s reliance on imports, boost employment opportunities, and foster technological innovation. The scheme will provide financial incentives to eligible companies based on their incremental sales of IT hardware manufactured domestically. These incentives will be disbursed over a period of four years, further motivating companies to invest in local manufacturing facilities.
The Indian IT hardware market has witnessed significant growth in recent years, driven by increasing demand from various sectors such as education, healthcare, e-commerce, and remote working. However, a large portion of this demand has been met through imports, highlighting the need for domestic production capabilities. The PLI Scheme 2.0 for IT hardware addresses this concern by incentivizing companies to establish or expand their manufacturing operations in India, thus boosting local production and reducing import dependence.
The government’s focus on promoting local manufacturing aligns with its broader initiatives such as the “Make in India” campaign, which aims to transform India into a global manufacturing hub. By nurturing the domestic IT hardware industry, the government aims to create a favorable ecosystem for both domestic and international players, fostering job creation, skill development, and technological advancement.
The inclusion of Apple, one of the world’s leading technology companies, in the list of potential participants in the scheme is a significant development. Apple’s involvement could act as a catalyst for other global technology giants to explore opportunities for manufacturing in India. The presence of such prominent players can provide a boost to the country’s manufacturing capabilities and contribute to India’s emergence as a preferred manufacturing destination.
The approval of the Rs 17,000 crore-incentive scheme marks a crucial step in the government’s efforts to strengthen the IT hardware manufacturing sector in India. As domestic production increases, the country will not only reduce its dependence on imports but also position itself as a competitive player in the global IT hardware market. The scheme’s positive impact on employment, technology advancement, and economic growth is expected to be significant, benefiting both the industry and the overall Indian economy.
