The much awaited PLI scheme for laptops, tabs is a game changer for the industry: ICEA
The government of India has just approved a PLI scheme for IT hardware products worth ₹7,350 crores.
The government of India has just announced a PLI scheme (production-linked incentive scheme) for IT hardware products, like laptops and tablets, worth ₹7,350 crores spread over four years. The India Cellular and Electronics Association (ICEA) welcomed the announcement and called it a “strong beginning and a game changer for the industry”.
This PLI scheme will help position India has a manufacturing hub and spur export and also create job opportunities. It is also going to extend the incentives between 4% to 1% on net incremental sales of good manufactured in the country under this particular segment to eligible companies.
"It is a strong beginning by the Government of India (GOI) to cover the IT hardware sector followed by the PLI for mobile manufacturing sector. We currently import a large part of our laptops and tablets for consumption. The proposed scheme is likely to benefit major global as well as domestic manufacturers of IT hardware products such as Laptops, Tablets,” said ICEA chairman Pankaj Mohindroo said in a statement.
“Over the next four years, the scheme is expected to have a total production of ₹3.26 lakh crore out of which exports will be ₹2.45 lakhs crore. It will also create 1.80 lakhs employment opportunity,” Mahindroo added.
For the ICEA this was a much awaited announcement as they believe that this segment needed to be promoted for manufacturing since there is a huge reliance on import for items like laptops and tablets currently.
Currently, as per reports, the global market for laptops and tablets is expected to touch $220 billion and the Indian market is expected to reach $7 to $10 billion by 2025.
With the PLI scheme, the IT hardware segment can work towards emerging as the second largest contributor, after mobile phones, towards the Aatmanirbhar Bharat vision.