Electronic companies including Dell, HP, Foxconn, Flextronics, VVDN Technologies, Bhagwati Products, Rising Stars Hi-Tech, HLBS Tech and Optiemus Telecommunication are among the 27 firms been approved under the new IT hardware production linked incentive (PLI) scheme of the government.

The Cabinet on May 17 this year, had approved PLI Scheme – 2.0 for IT hardware which covers laptops, tablets, all-in-one PCs, servers and ultra small form factor devices. The scheme extends an average incentive of around five per cent on net incremental sales (over base year) of goods manufactured in India and covered under the target segment, to eligible companies, for a period of six years.

Within a very short timeframe, I am happy to announce that 27 companies have been approved for the PLI. The best part is 23 out of these companies are ready to start their manufacturing from day zero and other four will begin production within next 90 days” Ashwini Vaishnaw, Minister of Communications, Electronics and IT, told reporters here.

This will lead to an investment of around ₹3,000 crore, additional production of around 3.5 lakh crore units, and direct employment of around 50,000 and indirect employment of around 1.5 lakh (total 2-lakh employees), he said.

“The best part is that the value chain is shifting to India and that’s the most important...consistently there is a movement of people who want to manufacture parts components, sub assemblies, towards India. This creates a very good base for the next big level of electronics manufacturing. Already we are around $105 billion (worth in electronics manufacturing) and we are moving rapidly towards $300 billion in the coming few years,” Vaishnaw added.

The PLI Scheme 2.0 for IT hardware is expected to result in broadening and deepening of the manufacturing ecosystem by encouraging the localisation of components and sub-assemblies and allowing for a longer duration to develop the supply chain within the country.

The scheme also provides increased flexibility and options for applicants, and is tied to incremental sales and investment thresholds to further incentivise growth. Furthermore, semiconductor design, IC manufacturing, and packaging are also included as incentivised components of the PLI Scheme 2.0 for IT hardware.