Boosting Domestic Manufacturing of IT Products: ELCINA Hosts Interactive Session on PLI Scheme 2.0 for IT Hardware

Industry Interactive Session on Production Linked Incentive Scheme 2.0 for IT Hardware

New Delhi (India), May 26: ELCINA, the Electronic Industries Association of India, successfully organized an industry interactive session on the Production Linked Incentive (PLI) Scheme 2.0 for IT Hardware on 25th May 2023. The session, was hosted jointly with Ministry of Electronics and Information Technology (MeitY), aimed to provide valuable insights and address queries regarding the scheme for the benefit of existing and potential investors in the IT hardware industry.

The PLI Scheme 2.0 for IT Hardware, recently approved by the Union Cabinet, has a budgetary outlay of Rs. 17,000 crore. It aims to boost domestic manufacturing, encourage capacity building, attract investments, and promote localization in the IT hardware value chain. The scheme covers products such as laptops, tablets, all-in-one PCs, servers, and ultra-small form factor (USFF) devices.

During the interactive session, industry members had the opportunity to interact with MeitY officials, gaining comprehensive understanding of the intricacies of the Scheme. The participants included senior government officials as well as prominent industry representatives, who actively contributed their insights and feedback, highlighting the collective commitment to harnessing the scheme’s potential for the growth and competitiveness of the IT hardware sector. The keen participation and avid discussions underscored the industry’s interest and determination to leverage the PLI Scheme 2.0, ensuring its successful implementation and fostering sustainable growth.

Shri. Sanjay Agarwal, President, ELCINA, stated, “This interaction on PLI 2.0 for IT Products comes at a crucial time for our industry as we are envisioning double digit growth in manufacturing. This scheme has the potential to revolutionize the IT hardware manufacturing landscape in India and propel us towards self-reliance and global competitiveness. It is a significant opportunity for our member companies to leverage the benefits provided by the PLI Scheme and strengthen their position in the market.” 

Leading the discussion, Shri Amitesh Kumar Sinha, Joint Secretary-Meity, presented the Scheme in detail and its salient features such as eligibility criteria, incentive structures, and investment opportunities. “The Scheme has been devised to be highly flexible providing opportunity to global as well as domestic companies to participate and benefit. The duration of the Scheme had been extended to six years, incentive enhanced to over 5% and additional benefit provided for increasing localization” Mr Sinha said. He further added “The seamless migration from PLI 1.0 to 2.0 was a new and unique feature for existing PLI applicants and relaxation on investment thresholds was a major benefit with support for component manufacturing”. Mr Sinha paid special attention to explain the detailed provisions, many of which were not clear to the delegates which would encourage broader participation and investments.  

During the session, Shri. Nirmod Kumar, Director (Electronics), MeitY, emphasized the significant impact of PLI 2.0 in bolstering value addition. He highlighted that the scheme’s focus on IT hardware manufacturing would not only drive domestic production but also encourage localization and stimulate the development of a robust component ecosystem in India. This would lead to increased self-reliance, reduced imports, and enhanced competitiveness and in turn strengthen the overall IT hardware ecosystem in the country.

The interactive session served as an invaluable platform for industry players to gain clarity on the PLI Scheme 2.0 and to address queries directly with MeitY officials. 

Rajoo Goel, Secretary General, ELCINA urged MeitY to prioritize and give utmost consideration to domestic IT product companies under the PLI 2.0 scheme. He emphasized the significance of these companies and the need for supporting them, specially those which were making concerted efforts to establish manufacturing facilities and designing their own products under their brands. Such companies were very few and largely MSME’s and must be supported to establish Indian brands. 

MeitY assured the participants that they would continue such interactions to clarify provisions of the Scheme and enable expediting investments to utilize the allocated budget of Rs 17,000 Crores at the earliest to achieve the incremental growth in production of Rs 3.35 Lac Crores. 

About ELCINA:

ELCINA (Electronic Industries Association of India) is a premier industry association representing the electronics manufacturing sector in India. With a rich history spanning several decades, ELCINA plays a pivotal role in promoting growth, innovation, and competitiveness in the electronics industry. It serves as a bridge between the government, industry players, and other stakeholders, advocating policies and initiatives that create a conducive environment for the industry’s development.

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By Akhil Kumar

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