27 companies including Dell, HP, Flextronics and Foxconn have been approved under the new production linked incentive (PLI) scheme for IT hardware. The government gave this information. Laptops, tablets, PCs (computers), servers and very small appliances are covered under this scheme. An incremental investment of approximately Rs 3,000 crore is expected from this scheme. The move comes at a time when India is wooing IT hardware companies with policy attractions and incentive schemes, and making a determined effort to establish itself as a global hub for high-tech manufacturing.
Will establish itself as a major force in the manufacturing of IT hardware
Electronics and IT Minister Ashwini Vaishnav said, I am happy to announce that 27 companies have been approved under the PLI IT Hardware Scheme. Of these, about 95 percent i.e. 23 companies are ready to start manufacturing from day one. Four companies will start production in the next 90 days. He said, there will be investment of about Rs 3,000 crore from these 27 companies…The most important thing is that the value chain is shifting towards India. Vaishnav said that this approval will establish India as a major force in the manufacturing of IT hardware including PCs, servers, laptops and tablets.
Approval given to big names under the scheme
The big names that have been approved under the IT Hardware Scheme include Dell, Foxconn, HP, Flextronics, VVDN and Optimus. Other applicants who have received the green signal include Padgett Electronics, SOJO Manufacturing Services, Goodworth, Neolink, Sirma SGS, Mega Networks, Panash DigiLife and ITI Limited, among others. Responding to a question on the absence of some big names from the list, the minister said that some people are evaluating and making their plans and it is just a question of time. However, he did not take any name.
Direct employment for 50,000 people
The Union Minister said that this scheme will generate additional production of Rs 3.5 lakh crore and create direct employment for 50,000 people and indirect employment for 1.5 lakh people. PLI Scheme 2.0 for IT Hardware was approved by the Union Cabinet on May 17, 2023 with the aim of enhancing India’s manufacturing power and promoting exports. The scheme aims to promote manufacturing of laptops, tablets, personal computers, servers and Ultra Small Form Factor (USFF) devices.