Make In India: Rs 5000 Crore PLI Push For Technology Product Manufacturing In India Includes Laptops
The PLI scheme for the electronics and technology products has an approved outlay of Rs 5000 crore for a five-year period. The category includes semiconductor fabrication, display fabrication, servers, computer hardware, Internet of Things devices as well as laptops and notebooks.
- Last Updated: November 12, 2020, 10:44 IST
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The government of India has further widened the scope of the Production-Linked Incentive (PLI) Scheme to boost manufacturing in India. Among the 10 new sectors that have been added are also electronics and technology products. This comes after the PLI push for the smartphone space over the last couple of months. The PLI scheme for the electronics and technology products has an approved outlay of Rs 5000 crore for a five-year period. The total financial outlay for the newly added categories, that include pharmaceuticals and drugs, automobiles and auto components, white goods such as ACs and TVs as well as textile products, is Rs 1,45,980 crore. This is part of the Aatmanirbhar Bharat mission and push for Make in India to evolve India into a manufacturing and export hub.
The PLI scheme for electronics and technology products will be implemented by the Ministry of Electronics and Information Technology. “India is expected to have a USD 1 trillion digital economy by 2025. Additionally, the Government's push for data localization, Internet of Things market in India, projects such as Smart City and Digital India are expected to increase the demand for electronic products. The PLI scheme will boost the production of electronic products in India,” says the official press statement confirming the cabinet approval of the PLI scheme for 10 key sectors.
The electronics and technology products category include semiconductor fabrication, display fabrication, servers, computer hardware, Internet of Things devices as well as laptops and notebooks.
“The Indian government's decision to introduce PLI for laptops is timely and in the right direction. We are confident that it will encourage local manufacturing and further bolster the local PC market, which is already seeing a positive momentum under the current work and learn from home scenarios,” says Rahul Agarwal, CEO and MD, Lenovo India. At this time, Lenovo manufactures computing devices at its facilities in Puducherry. The PLI scheme attempts to incentivize local manufacturing instead of imports, often from countries including China. Local manufacturing will also help in generation of jobs and further the scope of exports from India.
Earlier, the Government of India had approved applications of 10 smartphone manufacturers and 10 electronics manufacturers as part of the PLI scheme to incentivize smartphone production in India. These include Samsung Mobile, and Apple's suppliers Foxconn, Wistron, and Pegatron as well as domestic manufacturers including Lava, Micromax (Bhagwati), Padget Electronics, UTL Neolyncs, and Optiemus Electronics. The smartphone manufacturing PLI, which is implemented by the Ministry of Electronics and Information Technology (MEITY) has an outlay of Rs 40,951 crore for the next few years.