|
Getting your Trinity Audio player ready...
|
India, a burgeoning hub for technological innovation, marks a significant milestone in its quest for self-reliance in the IT hardware sector. Union Minister for Communications, Electronics and IT, Ashwini Vaishnaw, announced a significant milestone in this sector.
Twenty-seven (27) companies have already been approved under the Production Linked Incentive Scheme (PLI) within a short timeframe. in a remarkably short span. What’s more striking is that the vast majority are poised to commence manufacturing operations imminently, signalling a rapid advancement in India’s hardware manufacturing landscape.
The revelation sheds light on the robust preparedness of 23 out of the 27 approved companies, all set to initiate manufacturing right from day zero. Remarkably, an additional four enterprises are gearing up to commence operations within the next 90 days, underlining a swift and decisive response to India’s ambitious push for indigenous hardware production.
This unprecedented wave of approvals heralds the inception of manufacturing IT hardware for globally recognised brands within India’s borders. Envisioned as a catalyst for transformative change, the PLI Scheme sets ambitious targets to bolster the domestic manufacturing ecosystem and fortify export capabilities under the Atmanirbhar Bharat initiative.
The scheme, with a substantial budgetary allocation of ₹17,000 crores, represents a strategic initiative aimed at invigorating the IT hardware manufacturing spectrum. Encompassing a comprehensive array ranging from laptops, tablets, and all-in-one PCs to servers and Ultra Small Form Factor devices, the PLI Scheme 2.0 for IT Hardware is designed to infuse a new wave of manufacturing impetus while fostering an ecosystem conducive to localised production of components and sub-assemblies.
A notable facet of this scheme is its emphasis on broadening and deepening the manufacturing footprint. By encouraging the localisation of components and sub-assemblies, India aims to build a robust and self-reliant supply chain within the country, a pivotal step towards reducing dependency on imports and achieving self-sufficiency.
Crucially, the scheme offers a flexible framework with nuanced incentives tied to incremental sales and investment thresholds. In a strategic move, it extends its scope to include semiconductor design, IC manufacturing, and packaging, aligning with the broader goal of bolstering India’s foothold in high-tech manufacturing capabilities.
Underpinning the scheme’s mechanics is an average incentive of approximately 5% on net incremental sales, providing eligible companies with a tangible incentive over six years. This incentive structure, tied to incremental sales growth in laptops, tablets, all-in-one PCs, servers, and Ultra Small Form Factor devices manufactured domestically, incentivises companies to invest and grow within the Indian landscape.
The scope and ambition of the PLI Scheme 2.0 for IT Hardware signal a paradigm shift in India’s approach to hardware manufacturing. It signifies a concerted effort to create a conducive environment that not only fosters innovation and entrepreneurship but also positions India as a formidable force in the global IT hardware market.
India is keen to solidify its position as a leading smart manufacturing hub and has been implementing comprehensive infrastructure, policies and schemes to drive forward these ambitions.
OpenGov Asia reported that the Technology Development Board (TDB) and the Small Industries Development Bank of India (SIDBI) have signed a Memorandum of Understanding (MoU) to strengthen India’s micro, small, and medium enterprise (MSME) sector. The agreement aims to streamline the process of accessing credit for businesses involved in the development and commercial application of either indigenous or imported technology, a press release stated.
Another OpenGov Asia article revealed India is on track to become one of the top five global hubs for biomanufacturing by 2025. Biotechnology has the potential to become instrumental in global trade, contributing to India’s overall economic growth.
In 2014, India’s bioeconomy was approximately US$ 10 billion and today it stands at US$ 80 billion. In a span of just 8 to 9 years, it has gone up eight times. The government anticipates it will reach US$ 300 billion by 2030.
