In a big move to strengthen India’s role in the global electronics supply chain, the Indian government has approved 27 companies, including tech giants Dell, HP, and Foxconn, for investments under the Rs 200 crore Production Linked Incentive (PLI) scheme. This effort aims to boost the local production of IT hardware, with a goal of reaching an annual output of Rs 30,000 crore by 2026.
Minister for Electronics and IT Ashwini Vaishnaw expressed his satisfaction with the approvals, stating, “I am happy to announce that 27 companies have been approved under the PLI IT hardware scheme. About 95 per cent of these…23 companies are ready to start manufacturing from day-zero.” He highlighted that this move positions India as a significant force in the production of PCs, servers, laptops, and tablets.
Big Names, Big Investments
Among the 27 approved companies are major players like Dell, Foxconn, HP, Flextronics, Padget, Lenovo, New Link, Zenus, Mega, and Optimus. This signals a notable shift in the value chain towards India, aligning with the country’s ambition to become a global powerhouse in electronics manufacturing.
Under the PLI scheme, these 27 companies are anticipated to collectively invest Rs 36 crore while generating thousands of jobs in the IT hardware sector. The green signal isn’t limited to global players; domestic manufacturers such as Dixon Technologies and VVDN have also received approvals.
Significant Impact on Employment and Investment
The approved applications are projected to result in an additional investment of Rs 3,000 crores, contributing to an overall production value of Rs 3.5 lakh crores. This significant boost is expected to create a total of 2 lakh jobs. Direct employment is estimated at around 50,000, with indirect employment opportunities reaching approximately 1.5 lakh.
