New Delhi, May 17, 2023: The Electronic Industries Association of India (ELCINA) has expressed its warm welcome to the Government of India’s announcement of the updated Production Linked Incentive (PLI) scheme 2.0 for the IT hardware sector. The revised scheme, which nearly doubles the overall outlay to approximately Rs. 17,000 crore, is a significant step towards bolstering the domestic manufacturing ecosystem.
Under the six-year tenure of the PLI 2.0 scheme, the government aims to attract investments worth Rs. 2,430 crore. ELCINA acknowledges that this initiative addresses a long-standing demand of the industry and commends the government for actively considering and implementing it.
The scheme offers incentives to three categories of companies- Global IT Hardware Companies, Hybrid (Global/Domestic) Companies, and Domestic Companies. Existing PLI 1.0 applicants are also allowed to apply under PLI 2.0.
Additionally, ELCINA welcomes the flexibility and migration provisions of the PLI 2.0 scheme. This feature is especially heartening as it will enable more companies to take advantage of the scheme and invest in the growth of the Indian electronics and IT industry.
Shri Sanjay Agarwal, President of ELCINA, “The PLI Scheme 2.0 for IT Hardware will help India emerge as a hub for IT Hardware manufacturing and increase the country’s exports. It will encourage domestic companies to manufacture more IT hardware products in India and promote the development of the IT hardware ecosystem in the country.”
Shri Rajoo Goel, Secretary General of ELCINA, emphasized the positive impact of the PLI 2.0 scheme, stating, “This move will enable more Indian companies to grow and combine design and manufacturing capabilities, thus becoming global brands.” He further highlighted that PLI 2.0 for IT hardware will act as a catalyst for India’s $300 billion electronics manufacturing mission, a vital component of India’s trillion-dollar digital economy goal. The scheme will provide additional incentives for companies to invest in establishing their manufacturing base in India, including original equipment manufacturers (OEMs) incorporating Indian-designed intellectual property into their systems and products.
ELCINA believes that the PLI 2.0 scheme for IT hardware will foster sectoral growth, making India a global hub for IT hardware manufacturing. The association remains committed to working closely with the government to ensure the effective implementation of the scheme and to support the growth and development of the electronics industry in India.