Minister Announces Approval for 27 Companies under PLI Scheme for IT Hardware

The Production Linked Incentive Scheme (PLI) for IT Hardware, introduced by Prime Minister Narendra Modi and officially notified on May 29, 2023, with a budgetary allocation of ₹17,000 crores, seeks to bolster the IT hardware manufacturing landscape in India.

Ashwini Vaishnaw, the Union Minister for Communications, Electronics, and IT, revealed a significant development in India’s IT hardware sector, announcing that 27 companies have secured approval under the PLI Scheme in a remarkably short span.

During a press conference, Mr. Vaishnaw noted, “A few months back, PM Modi approved the Production Linked Incentive Scheme (PLI) for IT hardware. I’m very happy to announce that 27 companies have been approved for the PLI.” Impressively, approximately 95 percent of these approved companies, specifically 23 out of the total, are prepared to commence manufacturing immediately, while the remaining four are expected to initiate manufacturing within the next 90 days.

These approved applications are projected to result in an additional investment of ₹3,000 crores, contributing to an overall production value of ₹3.5 lakh crores. The direct employment generated is estimated at around 50,000, with indirect employment opportunities expected to reach approximately 1.5 lakh, culminating in a total employment boost of 2 lakh.

The companies receiving PLI approval include prominent names such as Dell, Foxconn, HP, Flextronics, Padget, Lenovo, New Link, Zenus, Mega, and Optimus, indicating a significant shift in the value chain towards India.

The overarching objective of the PLI Scheme for IT Hardware is to stimulate local manufacturing, promoting the localization of components and sub-assemblies while fostering the development of a robust supply chain within India. This scheme is part of India’s Atmanirbhar and ‘Make-in-India’ initiatives, aimed at enhancing global competitiveness, attracting investments, boosting exports, integrating India into the global supply chain, and reducing dependency on imports across various sectors.

Ashwini Vaishnaw had previously reported a remarkable response to the PLI scheme for laptops and PCs, with 32 applications received from major players like HP India, Dell, Acer, Lenovo, and Thomson. The scheme is anticipated to bring about incremental production of ₹3,35,000 crores, an incremental investment of ₹2,430 crores, and an expected direct employment boost of 75,000.