Schedule a Call Back
India's IT hardware PLI Scheme sees strong industry interest
Industry News- Sep 04,23
The government anticipates a cumulative investment of Rs 5,010 crore from the pool of 40 applicants, which includes prominent global IT hardware firms like Dell and HP participating directly in the revised production-linked incentive scheme.
Government officials announced that, out of the 40 companies that submitted applications for the Centre's revised production-linked incentive scheme for IT hardware, ten have already commenced production as of July 1, 2023. Additionally, 25 companies are planning to initiate manufacturing by April 1, 2024, while another five are expected to start operations by April 1, 2025.
The government anticipates a cumulative investment of Rs 5,010 crore from the pool of 40 applicants, which includes prominent global IT hardware firms like Dell and HP participating directly in the revised production-linked incentive scheme. Other key industry players such as HPE, Lenovo, Acer, ASUS, and Thomson are engaging in the program through electronics manufacturing services providers or contract manufacturers, including Flextronics and Rising Stars (a subsidiary of the Foxconn Technology Group in India).
Officials highlighted the involvement of Indian companies such as Padget (a Dixon Technologies subsidiary), VVDN, Netweb, Syrma, Optiemus Technologies, Sahasra, Neolync, Panache, Sojo (a unit of Lava mobiles), and Kaynes in the scheme. They noted that the scheme would gain momentum due to the robust IT services industry driving demand within the country.
It was emphasised that the scheme has received overwhelming interest. While the budgetary allocation stood at Rs 17,000 crore, applicants have projected a PLI amount totalling Rs 22,890 crore. These applicants also estimated a production figure of Rs 4.65 trillion, which includes exports worth Rs 28,288 crore, surpassing the targeted Rs 3.35 trillion.
Officials indicated that the selection of applicants would be finalised soon in accordance with the scheme guidelines, staying within the overall budgetary allocation of Rs 17,000 crore.
The six-year production-linked incentive (PLI) scheme for IT hardware, covering laptops, tablets, all-in-one personal computers, servers, and ultra-small form factor devices, aims to attract top hardware companies. Notably, Apple did not apply under the scheme, but one of its contract manufacturers, Foxconn (operating as Rising Stars Hi Tech), is among the 40 applicants. Government officials revealed ongoing discussions with Apple regarding the possibility of manufacturing iPads in India. Hewlett Packard Enterprise also recently announced a $1 billion investment in India for server production.
The second version of the scheme, introduced in May of this year, has received a more positive response compared to the initial one in 2021, which had a budget of approximately Rs 8,000 crore and saw limited participation from global players. The revised scheme offers a 5 per cent government incentive on net incremental sales, compared to the previous 2 per cent, over the base year. Companies can select the base year starting from FY23. Additionally, the scheme allows for a more flexible investment period of six years, as opposed to the previous four years. Companies opting for the scheme can also earn an additional optional incentive of 3 per cent if they utilise India-made and designed components, sub-systems, or inputs. Furthermore, companies can involve Indian contract manufacturers and receive incentives if these contractors exclusively produce for a single company. The scheme also permits investments from Chinese manufacturers in line with existing regulations.
Related Stories
Other Industrial Products
India is now positioned as a leading player in forging: Yash Munot
In this interview with Rakesh Rao, Yash Munot, President, Association of Indian Forging Industry (AIFI), highlights India’s readiness to strengthen its global position in forging, and importance o..
Read moreOther Industrial Products
Engineering Innovation Driving Industrial Decarbonisation and Energy Security
Industries worldwide face the dual challenge of meeting soaring energy demand while cutting emissions. Engineering innovations such as carbon capture, electrification, smart grids, and hydrogen fuel..
Read moreAutomation & Robotics
Ultra-low voltage motors and drives sector rebound in 2025: Interact Analysis
After growing at 0.1 per cent in 2024, the ultra-low voltage (ULV) motors and drives market is set for recovery in 2025, driven by mobile robotics and renewed industrial automation demand.
Read moreRelated Products
Integrated Electric Gripper S Series
ELECTRICAL & ELECTRONIC EQUIPMENT
IBK Engineers Pvt Ltd offers a wide range of integrated electric gripper S series.
Geared Electric Motors
ELECTRICAL & ELECTRONIC EQUIPMENT
Delco Fans Pvt Ltd offers single phase capacitor run and three
phase geared Instrument motors, totally enclosed face/foot mounted.
“Kusam-Keco” Partial Discharge Acoustic Imager - Model - Km-pdai
ELECTRICAL & ELECTRONIC EQUIPMENT
‘Kusam-Meco’ has introduced a new “Partial Discharge Acoustic Imager Model KM-PDAI.
latest News
Subscribe to iNoW
For Industry News on WhatsApp, Give a Miss Call on: +91 84228 74016
