The Indian government has given more time to apply for the Production-Linked Incentive (PLI) Scheme 2.0 for IT hardware. This scheme, worth Rs 17,000 crore, aims to boost local manufacturing and attract global tech companies to produce IT hardware within India. In this new attempt, the government has more than doubled the rewards for eligible participants compared to the previous version of the scheme.
What is PLI Scheme 2.0 for IT Hardware?
The PLI Scheme 2.0 for IT hardware is designed to enhance and strengthen the manufacturing ecosystem in India. It motivates companies to produce components and sub-assemblies locally, thus nurturing the development of a strong supply chain within the country. The plan offers people more freedom and options. It’s connected to increasing sales and investment goals, which encourages them to expand their efforts. Additionally, it includes incentives for semiconductor design, integrated circuit (IC) manufacturing, and packaging related to IT hardware.
Eligibility and Incentives
Companies eligible for the PLI Scheme 2.0 can receive an average incentive of around 5% on net incremental sales of eligible goods manufactured in India within the target segment. The scheme covers laptops, tablets, all-in-one PCs, servers, and ultra-small form factor (USFF) computers. Businesses have the option to pick either 2023, 2024, or 2025 as the starting point for figuring out their investment and sales calculations. Incentive is provided for six years from the base year.
Government’s Aim
The primary goal of the PLI Scheme 2.0 is to bolster the IT hardware manufacturing ecosystem in India. The government wants big international companies like Dell, HP, Apple, and Samsung to make their tech products here instead of bringing them from outside. This should help us rely less on imports, make more jobs, and make our country’s economy stronger.
Takeaway
Exciting update for businesses! The PLI Scheme 2.0 designed for IT hardware has prolonged its application deadline until August 30, 2023. This means that companies now have more time to participate and reap rewards while helping to enhance India’s IT hardware manufacturing industry.