Nineteen companies, including Dell, Foxconn, and Lava, have applied for the Centre’s new production-linked incentive (PLI) scheme for IT hardware, the government on Tuesday said.
The scheme had been announced in March and is similar to the one offered for domestic mobile phone production last year. The applicants for the IT hardware scheme include 15 domestic companies and four global firms.
Wistron, Rising Stars Hi Tech (a subsidiary of Foxconn) and Flextronics are among the global firms who are hoping to receive the benefits of the scheme. Besides Lava, domestic firms include Micromax, Dixon Technologies, Infopower (a joint venture between Sahasra Group and Taiwanese MiTAC Holdings Corporation), Syrma Technologies, Neolync Electronics, Optiemus Infracom, Netweb Technologies, Smile Electronics, Panache Digilife, RDP Workstations and more.
The PLI scheme for IT hardware offers an incentive of 2-4% on net incremental sales of goods over the base year of 2019-20. It is applicable for a period of four years, lasting up to 2024-25, and benefits of the scheme will be provided to approved applicants from April 1, 2021 onwards. Laptops, tablets, all-in-one personal computers (AIOs) and servers are amongst the target segments under this scheme.
According to government estimates, companies approved under the scheme will produce IT hardware worth ₹1,60,000 crore in India over the next 4 years. Over 37% of this is expected to be exported from the country, with about ₹60,000 crore. The government also said the scheme will bring investments worth ₹2350 crore to India’s electronics manufacturing space, and generate 37,500 direct employment opportunities.
India’s domestic value addition in IT hardware manufacturing is expected to grow from 5-12% right now to 16-35% in the next four years. Live Mint