The India Cellular and Electronics Association (ICEA) is encouraging both domestic and international supply chain stakeholders to take advantage of the opportunities presented by the Government of India's Production Linked Incentive (PLI) Scheme 2.0 for IT Hardware.
The initiative, which has a budget of over $2 billion, is a significant step towards strengthening India's IT Hardware manufacturing industry, giving global and domestic supply chains the chance to establish or expand their manufacturing bases in this thriving marketplace.
The PLI 2.0 scheme encompasses a range of IT hardware items, such as laptops, tablets, all-in-one PCs, servers, and ultra-small form factor devices. Its aim is to achieve $25 billion in IT hardware production and exports projected between $12-17 billion by 2025-26.
The scheme is an avenue for positioning India as a hub for IT hardware manufacturing, which is becoming increasingly important in the current global manufacturing landscape.
Mr. Pankaj Mohindroo, Chairman, ICEA, underscored the unfolding scenario, stating, "The global shift in IT hardware manufacturing towards India is becoming increasingly apparent. The PLI 2.0 Scheme is a significant lever in this shift, presenting a fertile ground for both global and domestic supply chains to expand or establish their manufacturing footprint in India, a market with inherent demand and immense growth potential.”
The IT hardware industry and the country cannot continue to suffer from a weak domestic manufacturing sector, according to ICEA. The program's structure, which includes a six-year average incentive of 5 per cent and incentives for localizing crucial components and sub-assemblies, is carefully crafted to promote a favorable environment for IT hardware production.
“The detailed incentives for localization of key components and subassemblies, including Bare PCB, Memory Modules, Display Panel, Power Adapter, and Battery, among others, are tailored to significantly lower the entry barriers for manufacturers,” Mr. Mohindroo added.
The ICEA invites both global and domestic supply chain stakeholders to explore and take advantage of the various opportunities presented by the PLI 2.0 Scheme, which will drive India's IT hardware sector towards greater growth.