“32 Companies Apply for India’s IT Hardware Production Incentive Scheme 2.0: Boosting Domestic Manufacturing and Reducing Laptop Imports”
In a significant boost to India’s efforts to boost domestic manufacturing, the government has received 32 applications for the production-linked incentive (PLI) scheme 2.0 for IT hardware. Of these, 25 applications are from domestic companies, marking a strong response to the initiative. The announcement, made by IT Minister Ashwini Vaishnaw, comes shortly after the government’s decision to impose restrictions on laptop imports from November.
In a significant boost to India’s efforts to boost domestic manufacturing, the government has received 32 applications for the production-linked incentive (PLI) scheme 2.0 for IT hardware. Of these, 25 applications are from domestic companies, marking a strong response to the initiative. The announcement, made by IT Minister Ashwini Vaishnaw, comes shortly after the government’s decision to impose restrictions on laptop imports from November.
The PLI scheme aims to encourage domestic manufacturing and reduce dependence on imports, particularly in the IT hardware sector. IT Minister Ashwini Vaishnaw revealed that well-known companies such as HP, Dell, Lenovo, Thompson, Acer, and Asus are among those set to manufacture laptops under the scheme. Additionally, HP, VVDN, and Lenovo are planning to manufacture servers.
However, it’s notable that Apple has not applied for the PLI scheme, though the company is already engaged in manufacturing certain components in India. The government expects that the implementation of the scheme will lead to a significant reduction in laptop and PC imports, indicating that import restrictions will no longer be a major concern.
Addressing concerns about the potential impact of the PLI scheme on existing players, Minister Vaishnaw stated that he had personally spoken to all the applicants and that they had not raised any issues. The move is anticipated to drive incremental production worth around ₹3.35 lakh crore, generating an expected direct employment of approximately 75,000 individuals.
Among the developments, the upcoming Dixon factory in Noida is poised to become a major employment hub, providing job opportunities for around 25,000 people. The manufacturing of laptops is projected to commence by April 2024. Major players like Dell are also expected to migrate to the PLI scheme.
Responding to inquiries about India’s strategy in light of global companies shifting away from China, Minister Vaishnaw emphasized that India is emerging as a reliable value chain partner. He highlighted the significance of manufacturing memory components first, which is vital for laptops. The companies’ detailed proposals have been shared, and the government remains optimistic that more firms will join the initiative, boosting India’s domestic manufacturing capabilities in the IT hardware sector.
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