Cabinet approves PLI schemes for IT and Pharma manufacturing

By OEM Update Editorial February 26, 2021 1:51 pm IST

The union cabinet approves Production Linked Incentive (PLI) scheme with a quantum of  ₹15,000 crores for IT and Pharma sectors.

The total quantum of incentive under the scheme is about ₹15,000 crores. The PLI scheme for pharmaceuticals is expected to promote the production of high value products in India with increased value addition to exports. Total increment exports of ₹1,96,000 crore and incremental sales of ₹2,94,000 crore is estimated during six years from 2022-23 to 2027-28. The scheme is expected to generate employment for both skilled and unskilled personnel, estimated at 20,000 direct and 80,000 indirect jobs.

The cabinet has also approved PLI for laptops, tablets and all in one personal computers and servers with total cost of proposed scheme being approximately ₹7,350 crore over four years with an employment generation potential of over 1,80,000 jobs. Currently, the laptop and tablet demand in India is largely met through imports valued worth $4.21 billion and $0.41 billion respectively in 2019-20.

The market for IT Hardware is dominated by approx. seven companies globally which account for about 70 per cent of the world’s market share. It is imperative that these companies will try to expand their operations in India and make it a destination for manufacturing IT hardware.

The five largest laptop and tablet manufacturing companies in the world will be brought to India and will be offered PLI, said Union Minister for Electronics and Information Technology and Communications, Ravi Shankar Prasad.