Indian IT Hardware Industry Boosts Under PLI 2.0 Scheme

ENA Sectors 2024-03-15 16:48:00 New Delhi, Mar 15 (KNN) In a significant stride towards bolstering domestic manufacturing, the Indian IT hardware industry is poised to achieve remarkable milestones under the second edition of the Production Linked Incentive (PLI 2.0) scheme by March 2024. Under the revamped scheme, which saw its budgetary outlay double to Rs 17,000 crore, a notable shift is witnessed with 38 companies actively participating, reported businessline. This surge in interest can be attributed to the scheme's enhanced incentives and extended tenure, now spanning six years. Global giants such as HP, Dell, Lenovo, and Foxconn, alongside local players like Dixon Technologies, have embraced the scheme, marking a pivotal moment in India's journey towards self-reliance in IT hardware production. The flexibility embedded within PLI 2.0 allows applicants to choose their base year, further streamlining the process and accommodating diverse production timelines. Although Apple opted out of the scheme, citing its focus on localising smartphone production, other industry leaders are poised to seize the opportunity. While some manufacturers have already initiated production, others, like HP, are slated to commence operations by 2025. Dixon Technologies, facilitating production for Lenovo and Acer, is also gearing up to launch its IT hardware line next year. One of the most notable enhancements in the scheme is the substantial increase in incentives, averaging around 5 per cent, a significant jump from the previous 2 per cent. This incentivises the production of laptops, tablets, PCs, servers, and ultra-small form factors within the country. Despite the burgeoning demand for IT hardware globally, particularly in light of the pandemic-induced shift towards remote work and learning, India's market for such products remains comparatively modest. However, initiatives like PLI 2.0 aim to transform India into a formidable player in the global IT hardware arena. While the country shipped a staggering 146 million smartphones in 2023, PC shipments stood at a modest 13.6 million units, highlighting the vast potential for growth in this segment. Bharath Shenoy, an analyst at IDC, underscored the significance of this shift, emphasising its potential to reduce dependence on imports from China, foster large-scale manufacturing, and create numerous job opportunities, aligning with the government's 'Make in India' initiative. (KNN Bureau) 37061 https://knnindia.co.in/news/newsdetails/sectors/indian-it-hardware-industry-boosts-under-pli-20-scheme 2024-03-15 16:48:00 knnindia.co.in Indian IT Hardware Industry Boosts Under PLI 2.0 Scheme