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ARTICLE · 22 JUNE 2023

Cabinet Approves PLI Scheme For IT Hardware

S.S. Rana & Co.
S.S. Rana & Co.
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S.S. Rana & Co.

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India is becoming a major electronics manufacturing nation as the global ecosystem of electronics manufacturing moves in India. Electronics manufacturing...

IndiaMedia, Telecoms, IT, Entertainment
Nidhi Chopra
Nidhi Chopra
Apalka Bareja
Apalka Bareja
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Introduction

India is becoming a major electronics manufacturing nation as the global ecosystem of electronics manufacturing moves in India. Electronics manufacturing in India has witnessed consistent growth with 17% Compound Annual Growth Rate ("CAGR") in last 8 years. This year it crossed a major benchmark in production – 105 billion USD (about Rs 9 lakh crore).1

On May 17, 2023, the Union Cabinet, chaired by the Hon'ble Prime Minister Shri Narendra Modi approved the second phase of the Production Linked Incentive ("PLI") Scheme 2.0 for IT Hardware with a budgetary outlay Rs. 17,000 crore, more than doubling the incentives in the initial version of PLI scheme for IT hardware which aimed at attracting global companies to manufacture in India.

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