On Wednesday, the Union Cabinet approved the Production Linked Incentive (PLI) Scheme for IT Hardware and Pharmaceuticals.
The scheme for IT Hardware proposes a production linked incentive to boost domestic manufacturing and attract large investments in the value chain of IT Hardware. The Target Segments under the proposed Scheme include Laptops, Tablets, All-in-One PCs and servers.
The Scheme shall extend an incentive of 4% to 2% / 1% on net incremental sales (over base year i.e. 2019-20) of goods manufactured in India and covered under the target segment, to eligible companies, for a period of four years, said a statement from the government.
The scheme is likely to benefit 5 major global players and 10 domestic champions in the field of IT Hardware manufacturing including Laptops, Tablets, All-in-One PCs, and Servers. This is an important segment to promote manufacturing under Atma Nirbhar Bharat as there is huge import reliance for these items at present.
The PLI scheme for Pharmaceuticals has been approved for a period of the financial year 2020-21 to 2028-29. The scheme is expected to promote the production of high-value products in the country and increase the value addition in exports. Total incremental sales of Rs 2,94,000 crore and total incremental exports of Rs 1,96,000 crore are estimated during six years from 2022-23 to 2027-28, the government said in its statement on Wednesday.