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%.
