Indian government wants its IT hardware industry to be as globally successful as TCS, HCL Tech and Infosys — announces PLI scheme worth ₹7,250 crore

• India announced a new production-linked incentive (PLI) scheme for IT hardware worth ₹7,250 crore on February 24.
• This includes boosting the domestic production of items like laptops, tablets, all-in-one personal computers (PCs) and servers.
• According to Union Minister Ravi Shankar Prasad, the Indian government wants India’s IT hardware industry to be as successful as its IT services sector on the global stage.

The Indian government announced a new production-linked incentive (PLI) scheme for IT hardware today. It includes products like laptops, tablets, all-in-one personal computers (PCs) and servers.

“This completes the triangle of electronic manufacturing in India,” said Union Minister Ravi Shankar Prasad during today’s Union Cabinet briefing. The other two corners of the triangle are the PLI for mobile phones which was announced in April last year and the PLI for telecom gear announced last week.

According to Prasad, the Indian government’s aim is to make Indian IT hardware as successful as Indian IT services — which includes companies like Tata Consultancy Services (TCS), HCL Technologies, Infosys, Wipro and Tech Mahindra — on a global scale.

“Ten target sectors along with specific product lines having high growth potential were identified by NITI Aayog for implementation of PLI Schemes. PLI Scheme for IT Hardware is a further step in that direction,” said Prasad, who has the Information Technology and Electronics portfolio in the central government.

The government will provide incentives worth ₹7,350 crore over the next four years. It estimates that production will hit ₹3.26 lakh crore with exports worth ₹2.45 lakh crore led by five global champions and ten national champions.

“Right now, the value addition of IT hardware is around 5-10%. In the next five years, this will increase to 20-25%,” said Prasad. The direct and indirect revenues generated from production under the new PLI scheme are expected to be ₹ 15,760 crore over next 4 years. It also is expected to generate over 1,80,000 jobs during the same time period.

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