As the relations between India and China remain tense after the Galwan border clash, the sense of competition for the manufacturing of electronic goods is ever-increasing between the two countries. The Government of India has announced ₹7,350 crore incentives for the production of laptops, tablets, PCs and servers in the country for its push in making India self-reliant or 'Atmanirbhar'.
Union minister Ravi Shankar Prasad said that the Production Linked Incentive (PLI) scheme was doled out with an aim to promote India as a global hub for hardware manufacturing.
Earlier, the government approved ₹12,195 crore scheme for telecom equipment manufacturing and ₹6,238 crore incentive scheme for ACs and LED lights, separated from ₹41,000 crore scheme for mobile phones, reported The Times of India.
The GOI said, "India will be well-positioned as a global hub for Electronics System Design and Manufacturing (ESDM) on account of integration with global value chains, thereby becoming a destination for IT hardware exports."
In the next four years, the government is hoping to bring on the additional production of ₹3.26 lakh crore by incentive schemes including ₹2.45 lakh crore through exports.
"Direct and indirect revenues generated from production under this scheme are expected to be ₹15,760 crore in the next four year. Domestic value addition for IT hardware is expected to rise to 20-25 % by 2025 from the current 5-10 % due to the impetus provided by the scheme," the government added.
Currently, the demand for laptops (₹29,470 crore) and tablets (₹2,870 crore) in India is largely met through imports. By 2025, the government is looking for a turnover of $1 trillion through digital and electronics manufacturing.