Union Cabinet clears PLI scheme to boost manufacturing of laptops, tablets, PCs
The National Policy on Electronics 2019 envisages positioning India as a global hub for Electronics System Design and Manufacturing
The central government has approved the Production Linked Incentive (PLI) Scheme for Information Technology Hardware. The scheme will boost domestic manufacturing and attract large investments in the value chain of IT Hardware including laptops, tablets, all-in-one PCs and servers.
According to an official statement issued today,, the scheme shall extend an incentive of 4% to 2% / 1% 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 (4) years.
It is likely to benefit five major global players and 10 domestic champions in the field of IT Hardware manufacturing including Laptops, Tablets, All-in-One PCs, and Servers.
The scheme 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% - 25% by 2025.
“This is an important segment to promote manufacturing under AtmaNirbhar Bharat as there is huge import reliance for these items at present,” said the 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 vision of National Policy on Electronics 2019 is to position India as a global hub for Electronics System Design and Manufacturing (ESDM) by encouraging and driving capabilities in the country for developing core components, including chipsets, and creating an enabling environment for the industry to compete globally.
Currently, the laptop and tablet demand in India is largely met through imports valued at USD 4.21 billion and USD 0.41 billion respectively in 2019-20. The market for IT Hardware is dominated by 6-7 companies globally which account for about 70% of the world's market share.
These companies are able to exploit large economies of scale to compete in global markets. It is imperative that these companies expand their operations in India and make it a major destination for manufacturing of IT Hardware.