Govt may keep Rs 7,500 cr outlay for IT hardware manufacturing under PLI scheme

Why in news

The Ministry of Electronics and Information Technology (Meity) plans to allocate Rs 7,500 crore for a Production-Linked Incentive (PLI) scheme to boost domestic manufacturing of IT hardware like PCs and servers.

Background

The government plans a Rs 7,500 crore outlay for IT hardware manufacturing. Foreign companies must invest Rs 500 crore over four years, while domestic firms face a threshold of approximately Rs 20 crore over five years.

Facts for Prelims

• SchemePLI scheme for IT hardware targets products including personal computers and servers
• FactProposed outlay for IT hardware manufacturing under PLI scheme is Rs 7,500 crore
• FactInvestment threshold for foreign companies is Rs 500 crore over four years
• FactInvestment threshold for domestic firms is approximately Rs 20 crore over five years
• BodyMinistry of Electronics and Information Technology (Meity) is the nodal ministry for the scheme

For Mains

Q. Discuss how Production-Linked Incentive (PLI) schemes contribute to India's goal of becoming a global manufacturing hub for electronics.

Dimensions to cover in your answer

• Supply chain resilience: Reducing import dependency on critical IT hardware components
• Fiscal trade-offs: Balancing direct fiscal outlays with long-term manufacturing capacity gains
• Incentive disparity: Addressing the different investment thresholds for domestic vs. foreign firms

Keywords: Production-Linked Incentive · Import Substitution · Manufacturing Hub · Foreign Direct Investment · Electronics Manufacturing

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