IT hardware PLI scheme generated output worth Rs 10,015 crore

Building on the success of the scheme for mobile phones, the government approved the PLI scheme 2.0 for IT hardware on May 17, 2023.
IT hardware PLI scheme generated output worth Rs 10,015 crore
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NEW DELHI: The production linked incentive (PLI) scheme for IT Hardware and its 2.0 version have collectively generated a total production value of Rs 10,014.72 crore as of December 2024.

As per the Ministry of Electronics and Information Technology (MeitY), the schemes, which incentivise the production of electronic items like smartphones, laptops, personal computers and desktops, have attracted Rs 522.17 crore in investment and created 3,879 direct jobs so far.

Building on the success of the scheme for mobile phones, the government approved the PLI scheme 2.0 for IT hardware on May 17, 2023. This expanded scheme supports the manufacturing of laptops, tablets, all-in-one PCs, servers, and ultra-small form factor devices in India. A total of 27 IT hardware manufacturers, including leading brands like Acer, Asus, Dell, HP, and Lenovo, have been approved under the scheme.

The government’s goal with PLI scheme 2.0 for IT hardware is to strengthen India’s manufacturing ecosystem. The scheme encourages localisation of components and sub-assemblies, develops the supply chain, and promotes semiconductor design, IC manufacturing and packaging. Companies under the scheme receive an average incentive of about 5% on net incremental sales of goods produced in India. This incentive is available for six years, based on the companies’ incremental sales and investment targets.

The scheme for smartphones has been especially successful, helping the country become the world’s second-largest manufacturer of smartphones. As per government data, mobile phones worth Rs 4.10 lakh crore were produced in India, contributing significantly to exports. IT minister Ashwini Vaishnaw has stated that India aims to reach $20 billion in smartphone exports.

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