The development comes just a week after the Cabinet approved the PLI scheme for telecom equipment.
The Cabinet has approved an incentive scheme of Rs. 7,325 crore to push the manufacturing of laptops, servers, tablets and all-in-one personal computers in the country. Under the Production Linked Incentive (PLI) scheme production worth Rs. 3.26 lakh crore and exports worth Rs. 2.45 lakh crore is estimated over a period of four years.
The government also expects investment to the tune of Rs. 2,700 crore to come in through the scheme, along with earning direct and indirect revenue of around Rs. 15,760 crore apart from creating 1.80 lakh jobs in four years. ET had reported this in its December 24 edition.
Union minister of electronics and IT, Ravi Shankar Prasad said that today's announcement completes the key trinity of electronics manufacturing since the government already announced the PLI scheme in mobiles last year under which significant investment has already come in along with PLI scheme for telecom equipment which was launched earlier this month.
Prasad said that scheme will help in the government’s agenda of moving towards “Atmanirbhar Bharat” and will also play a key role in achieving the target of $1 trillion revenue from Digital India.
“The PLI scheme in IT hardware is expected to lead to the total production of Rs 3,26,000 crore by five global champions which contributes 50% towards world's market and 10 national champions. Close to 75% of this production will be for export,” said Prasad.
He added that the compound annual growth rate (CAGR) of electronic manufacturing is 23%. In 2014-15, India's electronic manufacturing was Rs 1,90,366 crore which increased to Rs 5,46,550 crore in 2019-20. “We want to make India a global hub of electronic manufacturing.”
The government said that despite being launched during the height of the Corona pandemic, under the PLI for mobile scheme, goods worth Rs. 35,000 crore have already been produced and companies have invested Rs. 1,300 crore. Additional employment generation during this period stands at around 22,000 jobs. Another scheme for promoting manufacturing of electronics components called SPECS has also received 22 applications involving investment of about Rs. 13,500 crore in the areas of active, passive and electromechanical components; displays and mechanics for mobile phones.