Cabinet increases IT product development incentives to $2 billion


The Indian government has announced an expansion of its production-linked incentive (PLI) plan for information technology (IT) products to a total of $2 billion. The government will provide financial assistance of up to 4% of sales turnover to eligible IT companies over a five-year period, beginning in April 2021.

The scheme will benefit companies engaged in the manufacture of IT products such as mobile phones, tablets, laptops, servers, networking products, and other IT hardware products. Companies will be eligible for the scheme if they are able to achieve sales of more than ₹3,000 crore over the five-year period.

The government hopes that the scheme will help the country become a global hub for IT manufacturing. It is also expected to create thousands of new jobs and boost the country’s exports.

The government has also launched a separate scheme to promote the manufacturing of electronics components and parts, with a fund of $1.45 billion. This scheme will provide incentives of up to 6% of sales turnover to eligible companies that have achieved sales of more than ₹1,500 crore over the five-year period.