Foxconn, Wistron and Dell apply for PLI scheme in IT hardware

As many as 19 companies have filed applications under the Production Linked Incentive Scheme (PLI) for IT Hardware that was notified on March 3, 2021 by the Indian government. The companies that have applied under the category 'IT Hardware Companies' are: Dell, ICT (Wistron), Flextronics, Rising Stars Hi-Tech (Foxconn) and Lava.

Also, a total of 14 companies have filed applications under the category Domestic Companies, and they include: Dixon, Infopower (JV of Sahasra and MiTAC), Bhagwati (Micromax), Syrma, Orbic, Neolync, Optiemus, Netweb, VVDN, Smile Electronics, Panache Digilife, HLBS, RDP Workstations and Coconics.

This PLI scheme is for IT hardware products

After the success of the PLI scheme in mobile phone (handsets and components) manufacturing, the government has approved the same for IT hardware products.

The PLI Scheme provides an incentive of 4% to 2%/1% on net incremental sales (over base year of FY 2019-20) of goods that are manufactured in India to eligible companies for a period of four years(FY 2021-22 to FY 2024-25).

Ravi Shankar Prasad, Union Minister for Electronics & IT, Communications, Law and Justice said that PLI scheme for IT Hardware has been huge success in terms of the applications received from global as well as domestic companies.

“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," the Minister was quoted as saying in a government statement.

Total production target Rs 1,60,000 crore

The target IT hardware segments under the proposed scheme include laptops, tablets, all-in-one PCs and servers.

Over the next 4 years, the scheme is expected to lead to total production of about Rs 1,60,000 crore. Out of the total production, IT Hardware companies have proposed a production of over Rs 1,35,000 crore, and Domestic Companies have proposed a production of over Rs 25,000 crore.

The scheme is expected to promote exports significantly. Out of the total production of Rs 1,60,000 crore in the next 4 years, more than 37% will be contributed by exports of the order of Rs 60,000 crore.

The scheme will bring additional investment in electronics manufacturing to the tune of Rs 2,350 crore, the government statement said.

The scheme will generate approximately 37,500 direct employment opportunities in next 4 years along with creation of additional indirect employment of nearly 3 times the direct employment.