Production Linked Incentive scheme (PLI) for IT Hardware

Production Linked Incentive scheme (PLI) for IT Hardware

Part of: GS Prelims and GS – III – Economy 

In news

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

Key takeaways 

• Production Linked Incentive Scheme (PLI) for IT Hardware was notified recently. 
• 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. 
• The scheme is expected to promote exports significantly. 
• Out of the total production, more than 37% will be contributed by exports. 
• It will bring additional investment in electronics manufacturing to the tune of INR 2,350 crore.
• It will generate approximately 37,500 direct employment opportunities and indirect employment of nearly 3 times the direct employment.
• Domestic Value Addition is expected to grow from the current 5-12% to 16-35%.