Around 30 companies applied under PLI scheme for IT hardware: Ashwini Vaishnaw

The move comes less than a month after the government issued directions of mandatory licensing of imports of these items.

New Delhi: At least 30 applications have been received to domestically manufacture information technology (IT) hardware, including laptops, tablets, servers and ultra-small form factor devices, Union minister for electronics and information technology Ashwini Vaishnaw said on Wednesday, adding that it was in response to the government’s production-linked incentive (PLI) scheme and would likely generate 75,000 direct employment opportunities.

Ashwini Vaishnaw (ANI)

The move comes less than a month after the government issued directions of mandatory licensing of imports of these items, a decision that analysts said was meant to nudge device manufacturers to set up factories in India.

“There has been a great response from the industry, it was more than the government had anticipated,” Vaishnaw said at a press conference in the national capital. “It shows that the world views India as a reliable, trusted and high-talent source for IT hardware. The response shows the commitment of the global supply chain, it shows it is a high-trust partner.”

The companies that have applied include Dell International, Hewlett-Packard (HP), Acer, ASUS, and Lenovo, among others, said Vaishnaw.

“All the companies are committed to developing the domestic supply chain. The complete ecosystem is coming to India. For every direct employment opportunity generated, three indirect opportunities will also be generated,” the minister said.

The restrictions announced on August 3 allowed imports only through valid licenses.

The move triggered concerns across the industry, with the ministry of electronics and information technology saying that it would provide companies with a transition period to apply for the import licence.

Responding to questions regarding the curbs, Vaishnaw said that it was in the application process.

In May this year, the government first announced PLI 2.0 for IT hardware, allocating ₹22,880 crore, with a deadline of July end at first, but extended to August 30 later. Late on Wednesday, the government said it had received 38 applications, and the proposals amounted to ₹28,800 crore.

The PLI is to be offered over six years, a period in which the companies will get an incentive of up to 5% and an optional incentive of 4% if they use domestically-produced components, compared to the 2% incentive offered under the old scheme.

According to the government, the scheme is expected to add production worth ₹3.35 lakh crore, draw in new investments worth ₹2,430 crore, and lead to 75,000 new jobs over the six-year period.

Electronics manufacturing in India has witnessed consistent growth with a 17% compound annual growth rate in last 8 years, government data said.

This year it crossed a major benchmark in production, about ₹9 lakh crore. In February 2021, the government approved the first PLI scheme for IT hardware, covering the production of laptops, tablets, All-in-One PCs and servers with an outlay of ₹7,350 crore.