The Indian government has approved a revised version of its ambitious Production Linked Incentive (PLI) scheme with an outlay of Rs 17,000 crore for the IT hardware sector. The scheme, which was first announced in April 2020, aims to promote domestic manufacturing of IT hardware such as PCs, servers, storage devices, and networking equipment.
It is estimated that the scheme will result in an additional investment of Rs 1,400 crore and create an additional employment of 13,000.
The scheme will provide incentives to the companies that are engaged in the manufacturing of IT hardware in the country. Companies will be eligible for incentives based on their incremental sales of goods manufactured in India over the base year.
The incentives will be provided for a period of four years, and the total outlay of the scheme is Rs 17,000 crore. The government has also revised the original PLI scheme to include new segments such as cloud computing hardware, artificial intelligence hardware, Internet of Things (IoT) hardware, and cyber security hardware.