Cabinet approves Production Linked Incentive Scheme - 2.0 for IT Hardware
Tags: National Economy/Finance National News
The Union Cabinet, chaired by the Prime Minister Narendra Modi on 17th May approved the Production Linked Incentive Scheme 2.0 for IT Hardware with a budgetary outlay Rs 17,000 crore.
An overview of the news
Electronics manufacturing in India has seen a steady growth with a CAGR (Compound Annual Growth Rate) of 17% in the last 8 years.
This year it crossed a major benchmark in production of USD 105 billion (about Rs 9 lakh crore).
India has become the second largest mobile phone manufacturer in the world.
Mobile phone exports have crossed a major milestone of US $ 11 billion (about Rs 90 thousand crore) this year.
The global electronics manufacturing ecosystem is coming to India, and India is emerging as a major electronics manufacturing country.
Features of PLI Scheme 2.0 for IT hardware
It covers laptops, tablets, all-in-one PCs, servers and ultra small form factor devices.
The tenure of this scheme is 6 years.
Expected incremental production is Rs 3.35 Lakh crore.
Expected incremental investment is Rs 2,430 crore.
Expected incremental direct employment is 75,000.
What is Production Linked Incentive Scheme?
It is an initiative that provides incentives to domestic industries to promote production at the local level.
Through this scheme, the government aims to incentivize companies to increase the sales of manufactured products in domestic units.
The objective of the scheme is to make domestic manufacturing globally competitive and to become a global champion in manufacturing.
The government has launched this scheme with an outlay of around Rs 2 lakh crore for 14 sectors including Automobiles and Auto Components, White Goods, Pharma, Textiles, Advanced Chemistry Cell and Specialty Steel.
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