New Delhi- The government on Saturday said 27 companies, including Dell, HP, Flextronics, and Foxconn, have been granted approval under the production-linked incentive (PLI) scheme for IT hardware.

The scheme, which covers laptops, tablets, PCs, servers and ultra-small form factor devices, is expected to fuel incremental investments of about Rs 3,000 crore.

The nod to the applicants comes at a time when India is wooing IT hardware players with policy sweeteners and incentive schemes, making a determined push to position itself as a global powerhouse for hi-tech manufacturing.

“I am happy to announce that 27 companies have been approved for the PLI IT hardware scheme. About 95 per cent of these…23 companies are ready to start their manufacturing from day-zero,” Minister for Electronics and IT Ashwini Vaishnaw said at a briefing.

Four companies will start their production in the next 90 days.

“These 27 applications will lead to investments of about Rs 3,000 crore…The most important thing is that the value chain is shifting to India,” the minister said.

The approvals will position India as a big force in manufacturing of IT hardware, encompassing PCs, servers, laptops, and tablets, Vaishnaw said.

Among the big names that have been granted approval under the IT hardware scheme are Dell, Foxconn, HP, Flextronics, VVDN, and Optiemus. Other applicants that have received the green signal include Padget Electronics, SOJO Manufacturing Services, Goodworth, Neolync, Syrma SGS, Mega Networks, Panache Digilife, and ITI Ltd, among others.

To a question on the absence of certain large names from the list, the minister said that some are evaluating and making their plans and “it is just the question of time”. He, however, did not take specific names.

The scheme will lead to additional production of Rs 3.5 lakh crore and create direct employment for 50,000 people and indirect employment for 1.5 lakh people, the minister said.

The PLI scheme 2.0 for IT Hardware was approved by the Union Cabinet on May 17, 2023, with an aim to enhance India’s manufacturing prowess and spur export.

The scheme aims to bolster the manufacturing of laptops, tablets, personal computers, servers and Ultra Small Form Factor (USFF) devices.

With complex work now beginning to happen in India, there is an increasing level of value addition from here, Vaishnaw said.

“As these companies get established and scale up, many of the component sub-assemblies are coming… Beyond that, the base-level components are coming in parallel. It is a natural pull, and an additional point that is working in our favour is that there are very good design capabilities in the country,” he added.

It is pertinent to mention here that India hopes to play on the strength of its storied talent and skill base, vibrant market, and enabling policies to corner a substantial chunk of new investments flowing into IT, electronics and semiconductor production, and global value chains.  (PTI) 


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