Introduction
The Production Linked Incentive (PLI) scheme for large-scale electronics manufacturing has garnered significant investment in India. As of June 30, 2024, 32 companies have collectively investment of Rs 8,282 crore under this scheme, according to Jitin Prasada, the Minister of State for Electronics and Information Technology.
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Major Investments in Electronics Manufacturing
The PLI scheme, designed to enhance India’s electronics manufacturing capabilities, has attracted both greenfield and brownfield investments.
Out of the 32 companies approved:
- Greenfield Investments: Seven companies have made cumulative investments amounting to Rs 3,136 crore.
- Brownfield Investments: Twenty-five companies have contributed a cumulative investment of Rs 5,146 crore.
Expansion into IT Hardware Manufacturing
In addition to large-scale electronics manufacturing, the PLI scheme now includes IT hardware. PLI Scheme 2.0 for IT Hardware, announced on May 29, 2023, has attracted significant investments.
- Total Approved Companies: 27 companies with a committed investment of Rs 2,955 crore.
- Greenfield Companies: Six companies have invested Rs 78.57 crore.
- Brownfield Companies: Twenty-one companies have invested Rs 386.09 crore.
This follows the initial PLI scheme for IT hardware, notified on March 3, 2021, which approved 14 companies with a committed investment of Rs 2,517 crore and a production target of Rs 1,60,751 crore.
Extended Tenure Due to COVID-19 Impact
Recognizing the challenges posed by the COVID-19 pandemic, the Indian government has extended the tenure of the PLI scheme for large-scale electronics manufacturing by one year, from 2024-25 to 2025-26.
This extension allows participating companies to choose any five-year period until 2025-26 to meet their production targets, providing flexibility and relief to affected companies.
PLI Scheme Overview and Objectives
The PLI scheme for large-scale electronics manufacturing was launched on April 1, 2020, with the aim of boosting local production and reducing dependence on imports.
The scheme initially approved 32 companies with a committed investment of Rs 11,324 crore and a projected production target of Rs 10,70,000 crore.
The scheme aims to position India as a global hub for electronics manufacturing by providing financial incentives to companies based on their incremental sales of manufactured goods.
The IT hardware segment, introduced later, seeks to replicate this success by encouraging the production of laptops, tablets, all-in-one PCs, and servers within the country.
The PLI Scheme 2.0 for IT hardware, which builds on the initial scheme, aims to attract higher investments and achieve a production target of Rs 3,51,647 crore.
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Government Commitment to the PLI Scheme
Minister Jitin Prasada emphasized that the government has maintained the production and investment criteria under all versions of the PLI scheme. This consistency aims to provide a stable and predictable policy environment for investors.
“The government remains committed to fostering a robust electronics and IT hardware manufacturing ecosystem in India, The PLI scheme is a pivotal part of our strategy to achieve this goal, and the substantial investments it has attracted are a testament to its success.”
Minister Prasada in his statement to the Lok Sabha.
Future Prospects
It is set to boost India’s economic growth. It will create new jobs. The scheme aims to increase exports. It will strengthen the manufacturing sector. These impacts are essential for India’s economic development. As the country continues to recover from the pandemic, the government’s focus on industrial growth and technological advancement remains unwavering.
With the scheme’s extension, India is positioned for growth. Ongoing support will benefit participating companies. India is set to become a major player. The country will strengthen its role in global electronics and IT hardware manufacturing.
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Conclusion
The substantial investments made under the PLI scheme underscore its effectiveness in attracting both greenfield and brownfield projects.
As India pushes forward with its ambitious manufacturing goals, the PLI scheme stands out as a critical initiative driving the country’s industrial and economic resurgence.
