Industrial Sector Updates – Industrial Policy, Ease of Doing Business, etc.

Govt doubles outlay on PLI for IT hardware


From UPSC perspective, the following things are important :

Prelims level: Production Linked Incentive (PLI) scheme

Mains level: Not Much

Central Idea

PLI Scheme for IT Hardware

  • The PLI scheme for IT hardware was initially introduced in March 2021.
  • It provides incentives of over 4% for incremental investment in domestic manufacturing for eligible companies, such as Dell and Flextronics.
  • The scheme aims to boost domestic manufacturing, increase exports, and make India a prominent player in the IT hardware sector.
  • The scheme will have a tenure of six years, providing a long-term incentive for eligible companies to invest in domestic IT hardware manufacturing.

Growth in indigenous IT hardware

  • The government highlighted the growth of electronics manufacturing in India.
  • There is a 17% compound annual growth rate over the past 8 years and a production benchmark of $105 billion, including $11 billion in mobile phone exports.

New changes introduced

  • The budgetary outlay for the PLI scheme for IT hardware manufacturing has been set at ₹17,000 crore.
  • The incentive rate has been increased to 5%, offering a higher benefit to companies investing in domestic manufacturing.
  • An additional optional incentive has been introduced for using domestically produced components, although the specific rates of these incentives are not specified.
  • If the optional incentives are utilized as intended, the total incentive under the scheme could amount to 8-9%.

Achievements in Telecom hardware manufacturing

  • Telecom hardware manufacturing has surpassed the projected ₹900 crore and reached ₹1,600 crore.
  • Some Indian companies have become significant exporters of complex radio equipment worldwide.


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