Page 29 - Banking Finance June 2023

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manufacturing of food products, such as ready-to-eat
foods, processed fruits and vegetables, and marine
products.
8. White Goods (ACs and LED Lights): The scheme aims
to promote domestic manufacturing of air conditioners
and LED lights.
9. High-Efficiency Solar PV Modules: The scheme aims to
promote domestic manufacturing of high-efficiency
solar PV modules.
10. Specialty Steel: The scheme aims to promote domestic
manufacturing of specialty steel, such as steel used for
electrical transformers and electric vehicles.

The PLI for IT hardware such as laptops, tablets, all-in-one
computers, and servers was first announced with an initial laptops. PLI Scheme 2.0 for IT hardware covers laptops,
outlay of around Rs 7,300 crore over a period of four years. tablets, all-in-one PCs, servers and ultra-small form factor
Under the scheme, domestic players investing Rs 20 crore devices.
and clocking sales of Rs 50 crore in the first year, Rs 100
crore in the second, Rs 200 crore in the third, and Rs 300 The IT hardware industry is targeted to reach a production
crore in the final year, would pocket incentives of 1-4 per of $24 billion by 2025-26, with exports anticipated to be in
cent on incremental sales over 2019-20, the base financial the range of $12-17 billion during the same period.By
deepening & broadening the electronics ecosystem in India,
year. 42 companies in the telecom manufacturing sector
this scheme will play a key role in catalysing India's Techade
have invested Rs. 1,600 crore in the first year, instead of
and in achieving the $1 trillion digital economy goal -
the projected Rs. 900 crore.
including $300 billion of electronics manufacturing by 2025-
26.
Second Phase i.e. PLI 2.0
Building upon the achievements of the Production Linked
This revised PLI is expected to serve as a major catalyst for
Incentive (PLI) scheme implemented for mobile phones, the
both global and domestic companies aiming to establish or
Union Cabinet, chaired by the Hon'ble Prime Minister Shri
expand their IT hardware manufacturing operations in
Narendra Modi, on 17th May approved the revised India.This move will help more Indian companies grow and
Production Linked Incentive Scheme 2.0 for IT Hardware they can combine design and manufacturing to become
segment with a substantial budgetary outlay Rs. 17,000 global brands.
crores, more than doubling the budget for the scheme. The
scheme aims to leverage the achievements of the PLI Salient Features
scheme implemented for mobile phones, which played a
1. The PLI Scheme 2.0 for IT hardware encompasses a
pivotal role in establishing India as the world's second-largest
wide range of products including laptops, tablets, all-
mobile phone manufacturer. The scheme will be
in-one PCs, servers, and ultra-small form factor devices.
implemented from July 1, with a cap on maximum incentives
2. The scheme has a budgetary allocation of Rs. 17,000
available to participating companies. This decision further
crores, signifying a significant financial commitment
strengthens the government's commitment to promoting
toward promoting the IT hardware sector.
and supporting the growth of the IT hardware
3. The duration of this scheme is set for 6 years, providing
manufacturing sector in India.
a long-term framework to drive growth and
development in the IT hardware industry.
This scheme is focused on expanding India's production and
presence in Global value chains of IT hardware, servers and 4. It is anticipated that the implementation of this scheme
26 | 2023 | JUNE | BANKING FINANCE