ICEA welcomes Government of India approval under the PLI Scheme for IT Hardware Products worth Rs 7,350 Crores

India Cellular and Electronics Association (ICEA) wholeheartedly welcomes the recent announcement on the PLI scheme for IT Hardware Products – Laptops & Tablets worth Rs. 7,350 crores for over 4 years.

The PLI Scheme for IT Hardware is a further step in the same direction. The scheme would position India as a manufacturing hub, spur export and create new job opportunities. It will extend the incentives between 4% to1% on net incremental sales (over base year i.e. 2019 – 2020) of goods manufactured in India and covered under the target segment, to eligible companies.

Pankaj Mohindroo, Chairman, ICEA stated, “It is a strong beginning by the Government of India (GOI) to cover the IT hardware sector followed by the PLI for the mobile manufacturing sector. We currently import a large part of our laptops and tablets for consumption. The proposed scheme is likely to benefit major global as well as domestic manufacturers of IT hardware products such as Laptops, Tablets. Over the next 4 years, the scheme is expected to have a total production of INR 3.26 lakh crore out of which exports will be INR 2.45 lakh crore. It will also create 1.80 lakh employment opportunities. We are thankful to Shri Narendra Modi, Hon’ble Prime Minister and Hon’ble Union Minister for Communications, Electronics & Information Technology Shri Ravi Shanker Prasad for this path-breaking initiative.”

ICEA believes that this segment was very much crucial to promote manufacturing as there is huge import reliance on these items at present. As per the research, the global market for Laptops and tablets is expected to reach 220 Billion USD and in India, the domestic market is expected to reach 7 to 10 bn USD by the year 2025. The IT hardware (laptops, tablets) will definitely emerge as the second-largest contributor after the mobile handsets and will ensure India’sAatmanirbhar Bharat’s vision. With this new PLI scheme, we will not only meet our domestic needs but would also capture a large share of the global market”.

ICEA stated that it will continue to work with the Government and various industry stakeholders, located both within India and outside India as well, on outreach initiatives and handholding support to help actualize these objectives covered under PLI.