Oct 03 2023, 08:59
Centre’s clear message via IT hardware PLI 2.0 for Dell, HP, Acer etc;
The Centre is clear on the messaging through the revamped IT hardware PLI 2.0. The scheme will be a game changer in not only increasing local manufacturing but also creating the much needed components ecosystem. However, premium products will take longer to be made locally.
Approximately, 60 companies including HP, Dell, Acer, Asus, Dixon Technologies, Foxconn have applied for PLI 2.0, which focuses on IT hardware including laptops, desktops, tablets, and servers.
They have proposed investments of INR4,000 crore for additional hardware production of INR3.35 lakh crore over six years.
Kunal Chaudhary, partner — indirect tax, EY India says, “The applicants represent approximately 90% of the market. The participation level has been really high from most of the large brands.”
As per the IT hardware PLI 2.0 scheme, an average incentive of 5% will be provided by the government on net incremental sales over the base year, of goods manufactured in India, compared to 2% earlier.
The recent decision to curb free imports of laptops, desktops, and tablets also made global companies take advantage of PLI 2.0 sops to scale their manufacturing play in India.
Satya Gupta, CEO, EPIC Foundation (a Bengaluru-based non-profit, working to increase local electronics production) says, “There’s a baseline incentive (3%) given to anybody in the first year, which will increase if they do local value addition and decrease if they don’t.
This will certainly motivate participants to do more in India.”
the total IT hardware market will be INR3,40,000 crore or approx. USD40 billion.
The government expects at least 75,000 new direct jobs will be created due to PLI 2.0 and including indirect and temporary jobs the number will be over 200,000 over the next six years. “That’s big and with incentives tied to components, it’s a win-win situation for India,” adds Gupta.
source:et
Oct 03 2023, 10:06
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