NEW DELHI: Nearly 17 companies selected under the PLI (Production Linked Incentive) for IT Hardware will begin production in this financial year (FY25), said S Krishnan, Secretary of Ministry of Electronics and IT (MeitY). Six-seven companies out of 27 had started production last year.
Krishnan also mentioned that the government has been periodically reviewing the progress of the PLI incentive scheme and is quite satisfied with its progress.
The government introduced a revised PLI scheme of Rs 17,000 crore for IT hardware in May 2023. The objective of this initiative was to boost the domestic production of laptops, tablets, all-in-one PCs, servers, and ultra-small form factor devices within the country.
“Out of the 27 companies, a majority are expected to start production during the current year, which is 2024-25. I think if I recall the numbers correctly, about 17 companies are expected to start this year. About six or seven companies had started last year, and two companies are starting next year,” said Krishnan.
In November 2023, the government had approved the applications of 27 companies, including Dell, HP, Foxconn, and Lenovo for the PLI schemes for IT hardware. The minister for electronics and information, Ashwini Vaishnaw, while announcing the applicants, said this move will make India a major force in the manufacturing of PCs, servers, laptops, and tablets.
He added that these 27 companies will lead to investment of Rs 3,000 crore, direct employment of 50,000, and indirect employment of 1,50,000.
Companies approved under the PLI scheme include Dell, Foxconn, HP, Lenovo, Flextronics, VVDL, Rising Stars Hi-Tech, India Sales, Padget Electronics, SOJO, VVDN, and others.
However, the government has not yet released any incentives under the scheme to any companies as the scheme took off in the last quarter of this financial year. Therefore, the companies need to complete audits and other requirements. “So, not yet (releasing incentives). We are awaiting... Because, you know, the PLI scheme started in the last quarter of last year. The companies have to get their audits and things completed,” said Krishnan.
Nearly 44 major technology companies, including all significant players, applied for the scheme. According to Counterpoint Research firm, India’s total laptop or PC market size amounts to close to $8 billion annually, with approximately 65% of units being imported.