Dell, Foxconn, Lava among 19 companies that have applied under PLI scheme for IT hardware

A total of 19 companies including Dell, Rising Stars Hi-Tech (Foxconn) and Lava have filed applications under the production linked incentive (PLI) scheme for IT hardware. In addition to the big international brands 14 local players such as Dixon, Infopower (JV of Sahasra and MiTAC), Bhagwati (Micromax) and Syrma have also joined the bandwagon and submitted applications.

Speaking about the development the IT ministry said that these 19 companies are expected to expand their manufacturing operations to grow into national champion companies in IT Hardware production.

Responding to the reception the scheme received, IT minister Ravi Shankar Prasad said that the PLI scheme has been a huge success. : "We are optimistic and looking forward to building a strong ecosystem across the value chain and integrating with the global value chains, thereby strengthening the electronics manufacturing ecosystem in the country," he said.

The PLI scheme for IT hardware was notified on March 3, 2021. The scheme extends an incentive of 4 percent to 2 percent/1 per cent on net incremental sales (over the base year of FY 2019-20) of goods under target segments that are manufactured in India to eligible companies, for a period of four years (FY 2021-22 to FY 2024-25).

Over the next four years, the scheme is expected to lead to the total production of about Rs 1.60 lakh crore in products such as laptops, tablets, all-in-one personal computers (PCs) and servers.

The scheme is expected to bring additional investment in electronics manufacturing to the tune of Rs 2,350 crore and generate around 37,500 direct employment opportunities in the next four years along with the creation of additional indirect employment of nearly three times the direct employment.