ICEA urges global, Indian manufacturers to leverage revised PLI plan for IT hardware
ICEA) has called on global and domestic supply chain stakeholders to capitalise on the revised Production-linked incentive scheme for IT hardware, adding that the industry and the nation will no longer endure the ramifications of a stunted domestic manufacturing sector in IT hardware.
With a substantial budgetary outlay of more than USD 2 billion, the revised scheme heralds a significant pivot towards bolstering the IT Hardware manufacturing landscape in India, opening the doors for global and domestic supply chains to establish or expand their manufacturing bases in this vibrant market, the association said.
The government has received 40 applications from both global and domestic manufacturing companies to produce IT hardware under the revised scheme announced in May 2023.
This includes global companies such as HP and Dell, along with local manufacturers such as Dixon Technologies, Optiemus Electronics, Bhagwati Products (Micromax), and others.
Missing in action, however, are Apple and Samsung which together have made the smartphone PLI scheme a success by boosting exports.
«In the initial years, PLI approved firms will hone in on final assembly and PCBA, with a standalone PLI percentage tapering from 3% to 2% and then to 1%; yet, by building domestic capabilities in supply chain, they not only retain a 3% incentive but have the prospect to augment to more than 8%, catalysing a mutually beneficial landscape for PLI firms, the supply chain, and the nation as capacities for sub-assemblies/components burgeon,» ICEA chairman Pankaj Mohindroo said.
The revised scheme promises an average 5% incentive over a period of six years, alongside incentives for localising sub-assemblies and components.
«The detailed incentives
