Thread by @BiIndia

Indian government wants its IT hardware industry to be as globally successful as #TCS, #HCLTech and #Infosys — announces PLI scheme worth ₹7,250 crore

#PLI_ITHardware

businessinsider.in/tech/enterpris…

By @pabsgill

@pabsgill The Indian government announced a new production-linked incentive (PLI) scheme for IT hardware today. It includes products like laptops, tablets, all-in-one personal computers (PCs) and servers.

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@pabsgill “This completes the triangle of electronic manufacturing in India,” said Union Minister Ravi Shankar Prasad during today’s #UnionCabinet briefing.

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@pabsgill The other two corners of the triangle are the PLI for mobile phones which was announced in April last year and the PLI for telecom gear announced last week.

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@pabsgill According to Prasad, the Indian government’s aim is to make Indian IT hardware as successful as Indian IT services — which includes companies like Tata Consultancy Services (@TCS), @hcltech, @Infosys_GSTN, @Wipro and @tech_mahindra — on a global scale.

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@pabsgill @TCS @hcltech @Infosys_GSTN @Wipro @tech_mahindra “Ten target sectors along with specific product lines having high growth potential were identified by @NITIAayog for implementation of PLI Schemes. PLI Scheme for IT Hardware is a further step in that direction,” said Prasad.

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@pabsgill @TCS @hcltech @Infosys_GSTN @Wipro @tech_mahindra @NITIAayog The government will provide incentives worth ₹7,350 crore over the next four years. It estimates that production will hit ₹3.26 lakh crore with exports worth ₹2.45 lakh crore led by five global champions and ten national champions.

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@pabsgill @TCS @hcltech @Infosys_GSTN @Wipro @tech_mahindra @NITIAayog “Right now, the value addition of IT hardware is around 5-10%. In the next five years, this will increase to 20-25%,” said Prasad.

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@pabsgill @TCS @hcltech @Infosys_GSTN @Wipro @tech_mahindra @NITIAayog The direct and indirect revenues generated from production under the new PLI scheme are expected to be ₹ 15,760 crore over next 4 years. It also is expected to generate over 1,80,000 jobs during the same time period.

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