• UGI USER
  • Nov 20, 2023
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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.

Source: PIB
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 2.0

Incremental 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.