New Delhi: The Cabinet has recently approved a modified production-linked incentive (PLI) scheme for IT hardware manufacturing, which is expected to have a significant impact on job creation in the sector. Union Minister Ashwini Vaishnaw has stated that the scheme will generate approximately 75,000 direct jobs and an additional three times that number in indirect jobs.
Minister Vaishnaw highlighted that the direct employment generated by the scheme is expected to reach 75,000. Furthermore, considering the usual direct-to-indirect employment ratio of 1:3 in the IT hardware sector, an estimated 200,000 more jobs will be created indirectly.
The approved PLI scheme, known as PLI Scheme 2.0, has a total value of Rs 17,000 crore and aims to promote the domestic manufacturing of various IT hardware products such as laptops, tablets, all-in-one PCs, servers, and ultra-small form factor devices. It has a duration of six years and is projected to result in incremental production worth Rs 3.35 lakh crore.
India has made significant progress in electronics manufacturing, with mobile phone exports exceeding $10 billion and overall electronics manufacturing reaching $105 billion last year. Building upon this success, the government aims to replicate its achievements in promoting domestic smartphone and telecom equipment production by focusing on the manufacturing of laptops and other advanced computers.
With the implementation of the PLI scheme, the government anticipates a substantial boost in total electronics manufacturing in the country, targeting an annual production value of $300 billion.
The PLI scheme is designed to attract investment and promote domestic manufacturing capabilities, ultimately bolstering the country’s self-reliance in the IT hardware sector. By providing incentives to manufacturers, the government aims to create an environment conducive to innovation, research and development, and high-quality manufacturing processes.
The scheme will not only contribute to job creation but also lead to technology advancements and skill development in the IT hardware industry. It will encourage the establishment of manufacturing facilities and promote investments in research and development, which in turn will support the growth of a robust ecosystem of suppliers, manufacturers, and service providers.
By promoting domestic manufacturing, the PLI scheme will also have a positive impact on reducing India’s dependency on imported IT hardware products. It will enhance the country’s manufacturing capabilities, improve the availability of affordable and high-quality IT hardware devices, and contribute to the overall growth of the sector.
In conclusion, the modified PLI scheme for IT hardware manufacturing is expected to generate significant employment opportunities in both direct and indirect sectors. The scheme’s focus on promoting domestic manufacturing capabilities will not only create jobs but also stimulate technology advancements, skill development, and overall growth in the IT hardware industry. With its implementation, India aims to strengthen its position as a global manufacturing hub for IT hardware products and reduce import dependency while fostering self-reliance in the sector.
