Circular Details

Union Cabinet approves PLI Scheme for IT Hardware

To
All ELCINA MEMBERS

Union Cabinet approves PLI Scheme for IT Hardware

Dear Member/s

The Union Cabinet has approved the Production Linked Incentive (PLI) Scheme for IT hardware products such as Laptops, Tablets, All-in-One Personal Computers (PCs) and Servers. The Scheme offers incentives between 4% to 1% on net incremental sales of domestically manufactured goods, for a period of four (4) years. The proposed scheme is launched to encourage investment in this product segment and to strengthen the value chain. The total outlay under this scheme is Rs. 7,350 Crore over a period of four years.

Salient Features & Benefits:

  • Over the next 4 years, the Scheme is expected to lead to total production of upto INR 3,26,000 crore (INR 3.26 lakh crore).
  • Out of the total production in the next 4 years, more than 75% is expected to be from exports of the order of INR 2,45,000 crore.
  • Domestic value addition for IT Hardware is expected to rise to 20% - 25% by 2025 from the current 5% - 10% due to the impetus provided by the Scheme.
  • Increase in both domestic manufacturing and domestic value addition will help significantly reduce the large foreign exchange outgo that India will have to otherwise bear.

Currently, the laptop and tablet demand in India is largely met through imports valued at USD 4.21 billion and at USD 0.41 billion respectively. The market for IT Hardware is dominated by 6-7 companies globally which account for about 70% of the world’s market share. It is imperative that these companies expand their operations in India and make it a major manufacturing and exporting destination for IT Hardware products.

For more information about this scheme, Members may refer the PIB Release from this Link: https://pib.gov.in/PressReleasePage.aspx?PRID=1700425. Further details regarding Investment thresholds, Manufacturing Targets etc. will be announced in the Gazette Notification which is expected to be notified in the near future.

Members are requested to share their views/comments regarding this scheme.

Thanking you and with regards

Best regards

Rajoo Goel
Secretary General
ELECTRONIC INDUSTRIES ASSOCIATION OF INDIA (ELCINA)
(Formerly ELCINA Electronic Industries Association of India - CIN: U74899DL1967NPL015218)
ELCINA House, 422, Okhla Industrial Estate, Phase III
New Delhi 110020, INDIA
Tel: +91-11-26924597, 26928053, 41615985; +91-9911445893
Fax: +91-11-26923440
Website: www.elcina.com