DelhiDesk The Indian government has launched a revised Production Linked Incentive (PLI) scheme to encourage global IT hardware manufacturers to set up shop in the country. The scheme offers an incentive of 5% on net incremental sales over the base year, compared to 2% earlier, and a further 3% if companies use India-made components. Investments can be made over six years, instead of four, and companies can take on Indian contract manufacturers and avail incentives if the contractors are producing for a single company. The government expects the scheme to generate incremental production worth INR3.35tn ($45bn), incremental investment of INR24.3bn and direct employment of 75,000.
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Here is the news bullets sorted by DelhiBreakings.com team.
👉 HP, Dell, Acer and others already have high volumes (market) in India.
👉 Apple is niche, but the market is attractive and they’re seriously evaluating.
👉 The revised PLI scheme will offer an incentive of 5% on net incremental sales over the base year of goods manufactured in India, compared to 2% earlier, with a base year starting from FY23.
👉 The scheme provides flexibility for investments to be done over six years, instead of four years earlier.
👉 Companies can get an additional optional incentive of 3% if they use India-made and designed components, sub-systems or inputs.
👉 Indian contract manufacturers can be taken on board, and incentives can be availed if the contractors are producing for a single company.
👉 The government is expecting incremental production worth 3.35 trillion and incremental investment of 2,430 crore, which will generate direct employment for 75,000 people.
👉 The government has used its experience from the telecom and mobile phone PLIs, which have brought in investments of more than 3,600 crore and created millions of jobs over the past two years.
👉 Industry players such as Qualcomm, industry associations and contract manufacturers have welcomed the scheme and some of them intend to avail it.
👉 The scheme would foster domestic manufacturing and benefit major global manufacturers of IT hardware products such as laptops and tablets.
👉 The policy is valid for 6 years with clear incentives, thresholds, selection criteria and timelines.
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