 "Ravi Shankar Prasad")
The union cabinet on Wednesday approved production-linked incentive scheme for IT hardware products. The target IT hardware segments under the proposed Scheme include laptops, tablets, personal computers (PCs) and servers.
The total cost of the PLI scheme for IT hardware is approximately Rs 7,350 crore over 4 years.
"After the success of in bringing investments in mobile phone (handsets and components) manufacturing, the union cabinet chaired by the Prime Minister, Narendra Modi has approved the PLI scheme for IT hardware," the government said in a release.
The proposed scheme is likely to benefit major global as well as domestic manufacturers of IT hardware products and will offset the import reliance in this segment. Over the next 4 years, the scheme is expected to lead to total production of upto Rs 3.26 trillion.
The government believes domestic value addition for IT Hardware is expected to rise to 20- 25 per cent by 2025 from the current 5-10 per cent due to the impetus provided by the scheme.
It is also expected to bring an additional investment in electronics manufacturing to the tune of Rs 2,700 crore.
On the success of the earlier PLI schemes, the government said, the incentives for mobile phones and electronic components, launched last year during the middle of pandemic led to produced goods worth Rs 35,000 crore and companies invested Rs 1,300 crore under the scheme despite challenging times. Additional employment generation during this period stands at around 22,500 jobs.
Based on initial success of the PLI scheme, 10 target sectors along with specific product lines having high growth potential were identified by NITI Aayog.
"Today's announcements is a further step in that direction. It comes in close wake of PLI scheme for telecom and networking products that was approved by the government last week," the government said.
"Today's announcements is a further step in that direction. It comes in close wake of PLI scheme for telecom and networking products that was approved by the government last week," the government said.
