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PLI in IT hardware: Dell, Wistron, Foxconn, Lava, Bhagwati among 14 approved companies

PLI in IT hardware: Dell, Wistron, Foxconn, Lava, Bhagwati among 14 approved companies

MeiTY says scheme will generate additional direct 36,000 jobs in the next 4 years along with the creation of additional indirect jobs of nearly 3 times the direct employment

MeiTY approves 14 applicants under PLII for IT Hardware Products MeiTY approves 14 applicants under PLII for IT Hardware Products
Story highlights
  • Incentives worth Rs 7,325 crore to be provided over the next 4 years of manufacturing products in India
  • Production worth Rs 1.61 lakh crore and exports worth Rs 60 thousand crore estimated in four years
  • It will bring additional investments of Rs 2,517 crore and create 36,066 additional jobs in four years

The Ministry of Electronics and Information and Technology (MeitY) has approved 14 eligible applicants under the Production Linked Incentive Scheme (PLI) for IT hardware. The approved applicants include Dell, ICT (Wistron), Flextronics and Rising Stars Hi-Tech (Foxconn), Lava International Limited, Dixon Technologies (India) Limited, Infopower Technologies (JV of Sahasra and MiTAC), Bhagwati (Micromax), amongst others.
 
According to MeiTY, the scheme will generate additional direct employment opportunities of more than 36,000 in the next 4 years along with the creation of additional indirect employment of nearly 3 times the direct employment. Domestic value addition is expected to grow from the current 10-15 per cent to 25-30 per cent.
 
The scheme, notified on March 3, 2021, extends an incentive of 4 per cent to 2 per cent/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 four years (FY22 to FY25).
 
The target segments under the PLI scheme for IT Hardware include laptops, tablets, all-in-one personal computers (PCs) and servers. The scheme proposes production linked incentives to boost domestic manufacturing and attract large investments in the value chain of these IT hardware products.
 
Over the next four years, the approved companies under the PLI scheme for IT hardware are expected to lead to a total production of more than Rs 1.61 lakh crore. Four companies have been selected under the category IT hardware companies, which include Dell, ICT (Wistron), Flextronics and Rising Stars Hi-Tech (Foxconn).

Also read: PLI in IT hardware to help India become global manufacturing hub

Out of the total production, the approved companies under the IT hardware companies category have proposed a production of Rs 84,746 crore. And under the category of domestic companies, 10 companies namely Lava International Limited, Dixon Technologies (India) Limited, Infopower Technologies (JV of Sahasra and MiTAC), Bhagwati (Micromax) Neolync, Optiemus, Netweb, Smile Electronics, VVDN and Panache Digilife have been approved. They have proposed a production of Rs 76,007 crore. The scheme will bring additional investment in IT Hardware manufacturing to the tune of Rs 2,517 crore.
 
Ravi Shankar Prasad, minister for electronics & IT, communications, law and justice, said, "PLI scheme has been a huge success in terms of the applications received from global as well as domestic manufacturing companies. Industry has reposed its faith in India's stellar progress as a world class manufacturing destination and this resonates strongly with Prime Minister's clarion call of Atmanirbhar Bharat - a self-reliant India. The minister said that "we are optimistic and looking forward to building a strong ecosystem across the value chain and integrating with the global value chains, thereby strengthening electronics manufacturing ecosystem in the country."

Also read: Cabinet approves PLI scheme for manufacturing laptops, tablets, PCs, servers locally

Also read: Cabinet approves PLI scheme for pharmaceuticals, to bring Rs 15,000 cr investment