DELL, HP, FOXCONN GRANTED APPROVAL FOR IT HARDWARE PLI 2.0
Why in the News ?
Dell, HP, Flextronics, and Foxconn have received approval under the new IT hardware Production Linked Incentive (PLI) scheme, signalling a significant move in India’s electronics manufacturing landscape.
| Production Linked Incentive (PLI) Scheme 2.0· A government of India scheme to boost manufacturing and make India a global manufacturing hub.· Offers financial incentives to companies for incremental production or sales of targeted goods.· Covers 14 sectors, including electronics manufacturing, pharmaceuticals, chemicals, and textiles.· Aims to attract investments, create jobs, and enhance exports.· Provides incentives for manufacturing in India and making India a global manufacturing hub.Key Features of PLI 2.0Incremental production or sales of targeted goods.· Offers incentives based on sales turnover or investment made.· Supports large scale manufacturing in India.· Promotes research and development in India.· Encourages export of manufactured goods. |
Key Scheme Details
- Incentive Structure:
- Eligible companies receive an average incentive of about 5% on the net incremental sales of goods produced in India.
- The scheme spans six years, encouraging long-term commitment to domestic manufacturing.
Industry Impact
- Industry Giants Ready to Begin:
- Of the approved firms, 23 are poised to commence manufacturing immediately, while the remaining four will initiate production within the next 90 days.
Anticipated Outcomes
- Substantial Investment:The approval is expected to attract an investment of approximately ₹3,000 crore, further boosting the growth of the IT hardware sector in India.
- Increased Production:The sanctioned companies anticipate an additional production output of around 3.5 lakh crore units, contributing significantly to the domestic market.
- Employment Generation:Direct employment opportunities for 50,000 individuals and indirect jobs for 1.5 lakh people are projected, resulting in a total of two lakh employees.
Existing and Future Potential:
- India’s electronics manufacturing, currently valued at $105 billion, is rapidly progressing towards an ambitious $300 billion target in the coming years.
This approval under the PLI 2.0 scheme signifies a pivotal step toward bolstering India’s position in the global electronics manufacturing arena, attracting industry leaders and fostering economic growth.