New Delhi (NVI): The Union Cabinet today approved the Production Linked Incentive (PLI) scheme for IT Hardware products such as laptops, tablets and all-in one PCs to boost domestic manufacturing in the country.
Union Minister of Electronics & IT Ravi Shankar Prasad made the announcement after Cabinet meeting, chaired by the Prime Minister, Narendra Modi and said the target segments under the approved PLI scheme for IT Hardware include Laptops, Tablets, All-in-One PCs and Servers.
“This is an important segment to promote manufacturing under AtmaNirbhar Bharat as there is huge import reliance for these items at present,” he added.
The scheme proposes production linked incentive to boost domestic manufacturing and attract large investments in the value chain of IT Hardware products.
According to a cabinet statement, the total cost of the proposed scheme is approximately Rs 7,350 crore over 4 years, which includes an incentive outlay of Rs 7,325 crore and administrative charges of Rs 25 crore.
The scheme shall, extend an incentive of 4 per cent to 2 per cent / 1 per cent on net incremental sales (over base year i.e. 2019-20) of goods manufactured in India and covered under the target segment, to eligible companies, for a period of four years.
PLI scheme will also enhance the development of electronics ecosystem in the country, the Cabinet said.
It added that, “India will be well positioned as a global hub for Electronics System Design and Manufacturing (ESDM) on account of integration with global value chains, thereby becoming a destination for IT Hardware exports.”
The scheme also has an employment generation potential of over 1,80,000 (direct and indirect) over 4 years. It will provide impetus to Domestic Value Addition for IT Hardware which is expected to rise to 20 per cent – 25 per cent by 2025, the statement added
The Union Cabinet also approved the PLI scheme for pharmaceuticals over a period of eight years (FY21-FY29).
In this regard, Prasad said, “The PLI scheme for pharma is expected to promote the production of high-value products in the country and increase the value addition in exports.”
It will benefit domestic manufacturers, help in creating employment and is expected to contribute to the availability of wider range of affordable medicines for consumers. The scheme is also expected to bring in investment of Rs 15,000 crore in the pharmaceutical sector, as per the Cabinet statement.
-RJV
