The government is planning to provide production-linked incentives (PLI) worth ₹7,500 crore to manufacturers of laptops, tablets, personal computers, and servers with incentives ranging from 2-4%, the Financial Express reported. The government is expected to set different qualifying standards for domestic and foreign manufacturers, a similar condition under the PLI scheme for smartphone manufacturing. The Ministry of Electronics and Information Technology (MEITY) is looking to launch the scheme by April 1, the report said.
Foreign manufacturers would be eligible to avail the subsidy if their laptops are priced over ₹30,000, and tablets over ₹15,000, per the report. On the other hand local companies will have no such condition. Meanwhile, investment targets for overseas firms are expected to be fixed at ₹500 crore, which they’ll have to invest over four years. For local companies, the investment target will be ₹20 crore.
The PLI schemes by the government are aimed at increasing growing the manufacturing base in the country.
In November 2020, the Union Cabinet approved a similar scheme for the telecom sector, with an outlay of ₹12,195 crore, aimed at supporting the manufacturing of 4G, 5G, next generation radio access network and wireless equipment. The Advanced Chemistry Cell (ACC) battery sector also received a significant outlay of ₹18,100 under the PLI scheme. ACC batteries are rechargeable batteries than can be used in consumer electronics, electric vehicles and renewable energy.
Prior to this, in June 2020 the IT Ministry launched an incentive scheme for the electronics sector. Based on incremental sales from the financial year 2019–20, the PLI scheme will provide a 4–6% incentive on “electronic components and semiconductor packaging”, with the percentage gradually decreasing over the coming years, it said. An outlay of ₹40,951 crore over five years has been earmarked under the scheme. The government has already shortlisted sixteen electronics companies, including three companies that manufacture iPhones to start production under the scheme.