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The government can retain Rs 7,500 expenditure on manufacturing IT hardware under the PLI scheme

NEW DELHI : Government may retain Rs 7,500 crore output under production-linked incentive
to plan for IT hardware products such as PCs, laptops, tablets and servers, according to a source aware of the development.

Foreign companies are looking for incentives under the
to plan will have to invest Rs.500 billion over four years, while the five-year threshold for domestic companies is likely to be around Rs.20 billion, said the source, who declined to be named.

“Meity (Department of Electronics and Information Technology) will soon have the detailed guidelines approved by the Cabinet and hopes to introduce the
to plan from the next financial year. Stimulus spending is likely to be around Rs 7,500 crore,” the source said.

The government has announced a cumulative production-linked stimulus of Rs 2 lakh crore for 10 sectors to boost domestic manufacturing after seeing the pull from global giants like Apple’s contract manufacturer, Samsung etc
to plan in the Mobile Devices segment.

According to the mobile device industry association ICEA, India has the potential to increase its cumulative manufacturing capacity for laptops and tablets to over Rs. 7 billion by 2025 through policy intervention.

Expansion of laptop and tablet PC manufacturing may increase India’s share of the world market from the current 1 percent to 26 percent.

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Also, it will create 5,000 new jobs and result in a cumulative foreign exchange inflow of Rs. 5.5 crore and investments of over Rs. 7,300 crore by 2025.

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https://economictimes.indiatimes.com/tech/tech-and-gadgets/govt-may-keep-rs-7500-cr-outlay-for-it-hardware-manufacturing-under-pli-scheme/articleshow/80333429.cms The government can retain Rs 7,500 expenditure on manufacturing IT hardware under the PLI scheme

Jaclyn Diaz

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