The Indian government has decided to extend the application window under the Production Linked Incentive (PLI) Scheme 2.0 for IT hardware. The move comes as the government seeks to boost domestic manufacturing and reduce dependency on imports in the IT hardware sector. The Ministry of Electronics and Information Technology (MeitY) has announced that the new deadline for submitting applications is now August 31, 2021.
The PLI scheme aims to provide incentives to companies that manufacture IT hardware products such as laptops, tablets, personal computers, and servers. The goal is to attract investments in the sector, stimulate job creation, and develop a robust ecosystem for IT hardware manufacturing in India. The scheme offers a financial incentive of up to 4% to 2% of net incremental sales over the base year for a period of four years.
The extension of the application window is expected to encourage more companies to participate in the scheme, as they now have additional time to prepare and submit their applications. It also provides an opportunity for those who may have missed the earlier deadline to still apply and benefit from the incentives offered by the government.
By extending the deadline, the government is signaling its commitment to promoting domestic manufacturing and reducing dependence on imports in the IT hardware sector. The move is in line with the government’s broader push for self-reliance and the Make in India initiative. It is hoped that the scheme will attract both domestic and foreign companies to invest in setting up manufacturing units in India, thereby creating job opportunities and boosting the economy.
The IT hardware sector has seen a surge in demand in recent years, primarily driven by the rapid growth of remote work and online education. However, India currently relies heavily on imports to meet this demand, making it vulnerable to supply chain disruptions and price fluctuations. The PLI scheme seeks to address this issue by incentivizing domestic manufacturing and enhancing India’s self-reliance in the IT hardware sector.
In conclusion, the Indian government’s decision to extend the application window under the PLI Scheme 2.0 for IT hardware is a positive step towards promoting domestic manufacturing and reducing dependence on imports. The move provides more companies with the opportunity to participate in the scheme and benefit from the incentives offered. It is expected to attract investments, create job opportunities, and strengthen the ecosystem for IT hardware manufacturing in India.
