Lok Sabha Question No. 3308 (UNSTARRED), answered on 2022-03-23
Subject: PLI for IT Hardware
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: Hasmukhbhai Somabhai Patel

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA UNSTARRED QUESTION NO. 3308

TO BE ANSWERED ON 23.03.2022

## PLI  FOR  IT HARDWARE

## 3308. SHRI PATEL HASMUKHBHAI SOMABHAI:

Will the Minister of ELECTRONICS AND INFORMATION TECHNOLOGY be pleased to state:

- (a)  whether  the  Government  announced  the  Production  Linked  Incentive  (PLI)  Scheme  for  Information Technology(IT) Hardware;
- (b) if so, the details thereof;
- (c) whether the scheme proposes PLI to boost domestic manufacturing and attract large investments in the value chain of IT Hardware in current financial year;
- (d) if so, the details thereof; and
- (e)  whether  the  Government  allocated  funds  for  above  scheme  for  next  five  years  and  if  so,  the  details thereof?

## ANSWER

## MINISTER OF STATE FOR ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI RAJEEV CHANDRASEKHAR)

(a) and (b):   Government of India's goal is to make India a significant design and manufacturing hub in the Global Value Chain for Electronics as part of its AtmaNirbhar Bharat Economic policies. As part of this, we are broadening and deepening our Electronics Eco-system. In the post COVID-19 global business and trade environment, global companies are looking to diversify their manufacturing locations to mitigate the supply chain risks.

National Policy on Electronics 2019 (NPE 2019) envisions positioning 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.

Production  Linked  Incentive  Scheme  (PLI)  for  IT  Hardware  was  notified  on  03.03.2021.  This  Scheme extends an incentive of 4% to 2%/ 1% on net incremental sales (over base year of  FY2019-20) of  goods under  target  segments  that  are  manufactured  in  India  to  eligible  companies,  for  a  period  of  four  years (FY2021-22 to FY2024-25). The target IT hardware segments under the Scheme include Laptops, Tablets, All-in-One  Personal  Computers  (PCs)  and  Servers.  Incentives  are  applicable  under  the  scheme  from 01.04.2021. A total of 14 companies have been approved under the PLI Scheme. List of companies approved under the PLI Scheme for IT Hardware is at Annexure .

(c) and (d):In order to boost electronics manufacturing in the country and incentivize large investments in the electronics value chain, PLI Scheme for IT Hardware was notified on 03.03.2021. Over the next 4 years, the 14 approved companies under the Scheme are expected to lead to total production of about ₹ 1,60,000 crore. Out  of  the  total  production  of  ₹  1,60,000  crore  in  the  next  4  years,  more  than  37%  is  expected  to  be contributed  by  exports  of  the  order  of  ₹  60,000  crore.  The  scheme  is  expected  to  bring  an  additional investment in electronics manufacturing to the tune of ₹ 2,500 crore. Generation of 36,066 additional direct jobs and three times indirect employment is expected under the PLI Scheme for IT Hardware.

- (e):  The total budget outlay approved by the union cabinet for PLI scheme for IT Hardware scheme is INR 7350 Crore.

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|   List of companies | List of companies                                  | Annexure   |
|---------------------|----------------------------------------------------|------------|
|                   1 | Dell International Services India Pvt. Ltd.        |            |
|                   2 | ICT Service Management Solutions (India) Pvt. Ltd. |            |
|                   3 | Rising Stars Hi-Tech Pvt. Ltd.                     |            |
|                   4 | Flextronics Technologies (India) Pvt. Ltd.         |            |
|                   5 | Lava International Ltd.                            |            |
|                   6 | Dixon Technologies (India) Ltd.                    |            |
|                   7 | Infopower Technologies Pvt. Ltd.                   |            |
|                   8 | Bhagwati Products Ltd.                             |            |
|                   9 | Neolync Tele Communications Pvt. Ltd.              |            |
|                  10 | Optiemus Electronics Ltd.                          |            |
|                  11 | Netweb Technologies India Pvt. Ltd                 |            |
|                  12 | Smile Electronics Ltd.                             |            |
|                  13 | VVDN Technologies Pvt. Ltd.                        |            |
|                  14 | Panache Digilife Ltd.                              |            |

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