Major technology companies including Dell, HP, and Lenovo are among the 27 firms that have received approval to manufacture IT hardware in India under a production-linked incentive (PLI) scheme. The scheme, known as PLI Scheme 2.0 for IT hardware, was sanctioned by the Indian government in May. It aims to encourage domestic manufacturing and attract significant investments in the value chain.
The approved companies will receive incentives for manufacturing laptops, tablets, all-in-one personal computers, micro PCs, and servers. The scheme has a budget of 170 billion Indian rupees (approximately $2 billion) spread over six years.
The approved applicants, including well-known brands such as Acer, Asus, Dell, HP, and Lenovo, are expected to invest a total of $360 million and create around 200,000 jobs. This comprises 50,000 direct employment opportunities and 150,000 indirect employment opportunities.
The IT hardware manufacturing sector in India is expected to grow from $15.52 billion in 2022 to $22.77 billion in 2027. The PLI Scheme 2.0 for IT Hardware aims to address the manufacturing challenges faced by the sector by encouraging localization of components and sub-assemblies.
It also provides a longer duration for developing the supply chain within the country. The scheme is part of the broader trend of technology companies diversifying their manufacturing bases outside of China, attracted by incentives and the potential of India as the world’s second-largest smartphone market.
