Measuring success

Increasing PLI allocation will not be enough

Business Standard Editorial Comment


Listen to This Article

In another attempt to boost electronics manufacturing, the Union Cabinet on Wednesday approved the production-linked incentive (PLI) scheme 2.0 for IT hardware with a budgetary outlay of Rs 17,000 crore, compared to the previous allocation of Rs 7,325 crore. The scheme is aimed at incentivising the production of devices such as laptops, tablets, personal computers, and edge computing devices in the country. The tenure of the scheme has also been increased to six years from four years. The average incentive has been enhanced to 5 per cent compared to 2 per cent offered in the previous version of the scheme. Companies using local components will now get additional incentives. At the aggregate level, the incentive could go up to 8-9 per cent of incremental sales. With the modified scheme, the government expects an investment of Rs 2,430 crore in the sector during the given period. It also expects the revised scheme to create 75,000 direct jobs and boost production by Rs 3.35 trill

Also Read

Centre likely to discontinue second phase of Fame-II scheme after FY24

Govt will soon launch new PLI scheme for IT hardware: Union minister

Cabinet okays revised IT hardware PLI scheme with Rs 17,000-cr outlay

Govt clears Rs 357 cr for Foxconn under PLI scheme for phone manufacturing

Green hydrogen manufacturing to come under PLI scheme: R K Singh

Regulating AI

A subpar record

Curbing defence imports

Safe farming

Pakistan's destiny

First Published: May 18 2023 | 10:28 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers. Already a BS Premium subscriber?LOGIN NOW

Register to