IT hardware manufacturers flag PLI investment clause; cite demand issues

Foxconn, HP, and Dixon Technologies have requested the government drop the proposed requirement of fresh investments in order to avail of the production-linked incentive (PLI) scheme being prepared for the industry, The Economic Times (ET) has reported.

The IT manufacturers have said that they have underutilised capacities that first need to be used up before they can commit to further expansion. They added that the capacity expansion does not make sense as global PC and tablet sales have been steadily declining.

Earlier in a meeting of officials from the ministry of electronics and information technology (MeitY),