“The PLI scheme 2.0 will accelerate the domestic IT hardware manufacturing ecosystem in India and enable businesses to grow beyond regional markets,” said Rajen Vagadia, vice president, Qualcomm India, and president of Qualcomm India and SAARC. Qualcomm is among the world’s largest microchip makers.
“This initiative will specifically enable India to expand its production capacity and enhance its global presence in the value chains of IT hardware, servers, and laptops,” said Prabhu Ram, Head- Industry Intelligence Group (IIG) at Cyber Media Research.
This week, the Tata Group began manufacturing the Apple iPhones at a factory near Bengaluru, as part of a larger deal to acquire the manufacturing facility from Taiwanese electronics manufacturer Wistron.
Foxconn, another Taiwanese manufacturing giant and partner for Apple as well as other tech companies including Xiaomi, is investing $500 million in a new facility in Telangana. It is expected to create as many as 25,000 new jobs, and manufacturing will start by the end of 2023.
The PLI 2.0 scheme for IT hardware is essentially the third chapter in the government push to incentivise manufacturing in India. “This is an excellent step for the comprehensive growth of the Indian electronics manufacturing industry,” says A. Gururaj, MD, Optiemus Electronics Limited, a tech manufacturing company.
The PLI scheme, first announced in October 2020, focused exclusively on pushing manufacturing of smartphones in India for a period of five years. Manufacturers approved at the time included Samsung, Foxconn, Wistron, Pegatron, Optiemus Electronics, as well as Indian phone manufacturers Lava and Micromax.
The results were evident earlier this year when India crossed the $11 billion mark (that is around ₹90,000 crore) for smartphone exports . This, up from ₹45,000 crore in FY 2022, according to the India Cellular and Electronics Association (ICEA).
“Following the PLI Scheme’s success in establishing a robust, globally recognized foundation for smartphone manufacture, PLI 2.0 will strengthen India’s electronic and IT hardware industry further and its presence in the global value chain,” added Qualcomm’s Vagadia.
The 2020 scheme was followed by a PLI scheme for IT hardware in February 2021, with a budgetary outlay of ₹7,350 crore over a period of four years. The contours were similar – focus on manufacturing laptops, all-in-one PCs, tablets and servers, in India.
Tech companies in India responded almost immediately at the time. For instance, Xiaomi added new partners for manufacturing smartphones and Smart TVs in India – DBG and BYD joined Foxconn and Flex.
Source- Hindustan Times.