Govt allocates Rs 7,500 crore for IT hardware manufacturing under PLI scheme
In order to give a boost to the hardware sector in the country, the government can allocate Rs 7,500 crore to the sector under PLI (Production Related Incentive) scheme in the upcoming budget. A source aware of this whole development said that this incentive will be given to promote the manufacture of information technology (IT) hardware products such as personal computers, laptops, tablets, and servers, etc.
On the condition of not disclosing his identity, this source said that foreign companies are eyeing incentives under the PLI scheme. These companies may have to invest Rs 500 crore in the country during the next four years. At the same time for domestic companies, this limit can be kept up to Rs 20 crore during the next five years.
2 lakh crore production linked incentive scheme
The government has announced a production-linked incentive scheme of Rs 2 lakh crore for 10 sectors to encourage domestic manufacturing. The plan could be implemented in view of the attractiveness of Apple’s contractual manufacturing and Samsung, the leading global companies in the field of mobile devices.
According to the ICEA, a body of mobile device industry, India has the potential to take the laptop and tablet manufacturing capacity to over seven lakh crore rupees by 2025 through hand-in-hand policies. Increasing domestic manufacturing of laptops and PC tablets can increase India’s share in the global market to 26 percent from the current one percent.