Electronics

IT Hardware PLI: Center seeks quotes in response to industry demands to increase spending

The industry is reportedly demanding higher spending to Rs 15,000 and an incentive rate of 5%.

After repeated demands from the industry to increase spending on IT hardware production-linked incentive (PLI) schemes, the government finally estimates the nature of production, exports, and value added resulting from increased incentive spending. I asked.

Quoting senior bureaucrats, Economic Times He said the final decision would only be made after Cabinet Minister Ashwini Vaishnav, who holds the IT portfolio alongside telecommunications and rail, met with industry representatives.

The industry is reportedly demanding higher spending to Rs 15,000 and an incentive rate of 5%.

“We asked MeitY to revisit the PLI because it cannot currently attract investments and products to the full potential of the global value chain,” said the Association of Information Technology Manufacturers (MAIT). CEO George Paul said. , Told the publication.

Last week, MAIT, which includes Acer, Cisco, Dell, HP, Intel, Samsung and others, met with newly appointed IT Minister Rajeev Chandrasekhar to seek increased current spending and an incentive rate of five. increase. Percent from the current average of 2.3% per year. The body also urged extending the duration of the plan from the current four years to eight years.

MAIT, along with other industry leaders, accelerates demand generation, creates hubs for electronics, repair and calibration work, inward and outward processing, builds component manufacturing bases in India, and exports by PLI We talked about how to expand and succeed. ..

According to the industry, the current form of scheme is inadequate to make India a hub for production and exports. The scheme aims to end India’s dependence on imports, which is a whopping $ 4.21 billion for laptops, but is currently manufactured domestically out of India’s aggregate demand of $ 4.85 billion. There are very few. Similarly, for tablets, $ 410 million of India’s total market of $ 500 million is imported.

Through the PLI scheme, the government hopes not only to offset imports, but also to gain a fair share of the global market on laptops, fixed at $ 240.9 billion in 2019.

However, according to the application, global manufacturing giants Dell, Flextronics, Foxconn and Wistron have so far promised only 40% of the total production and incentives allowed by the scheme. It emphasizes the failure of plans to attract large investments. In fact, there were only four applicants in the five slots of foreign manufacturers.

Industry insiders saw some kind of approval, and through the IT hardware PLI, the government reduced estimates from Rs 3.26 and Rs 2.45 to Rs 1.61 and Rs 60,000 respectively in the February announcement. ..

The IT Hardware PLI scheme provides 4% to 1% incentives for 4-year net incremental sales (base year, or 2019-20) of products manufactured in India and covered by the target segment. Enlarge.

https://www.electronicsb2b.com/headlines/it-hardware-pli-centre-seeks-estimates-following-industrys-demand-to-hike-outlay/ IT Hardware PLI: Center seeks quotes in response to industry demands to increase spending

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