PLI scheme 2.0 for IT Hardware

PLI scheme 2.0 for IT Hardware

News: Recently, revised production-linked incentive (PLI) scheme for IT hardware has received an “excellent” response from 38 companies, including global ones such as HP, Dell, Lenovo and Foxconn as well as local maker Dixon Technologies.

What is PLI Scheme?
• The PLI scheme gives financial incentives/rewards based on their production and sales. Its main objective is to scale up domestic manufacturing capability, make our goods competitive globally and create more jobs.
• The incentives are calculated based on incremental sales. They range from 1% to 20% depending on the industry.

What is PLI scheme 2.0 for IT hardware?
• It aims at broadening and deepening the IT hardware manufacturing ecosystem in the country.
• It extends an average incentive of around 5 per cent on net incremental sales (over the base year) of goods manufactured in India and covered under the target segment, to eligible companies, for a period of six years.
• Companies that locally manufacture certain components including memory modules, solid state drives and display panels will get additional incentives.
• The target products include Laptops, Tablets, All-inOne PCs, Servers, Ultra Small Form Factor (USFF), Semiconductor design, IC manufacturing, and packaging are included.
• It provides increased flexibility and options for applicants and is tied to incremental sales and investment thresholds to further incentivise growth.

Expected benefits of PLI 2.0 for IT Hardware:
• Rs 22,880 crore - Outlay of IT hardware PLI scheme.
• Rs 4,000 crore - Total investment the scheme may attract.
• Rs 3.35 trillion: Worth of estimated incremental production over six years.
• 48% - Likely increase in local value addition
• 75,000 Direct jobs may be created on account of the scheme.
• April 2024 is the time by when companies may begin manufacturing.