PLI scheme for IT server, hardware too

The outcome of the PLI scheme is that today India is one of the largest mobile phone manufacturers. During April-October 2022, smartphones worth 5 billion dollars were exported. Now it wants to replicate the experience and success in the IT servers and hardware sector.

New Delhi, Jan 12: Union Minister of Electronics and Information Technology Rajeev Chandrasekhar has hinted at extending the production-linked incentive (PLI) scheme to IT server and hardware production companies too. Modi government's intention in this regard could be inferred from his address at the VLSI Design Conference 2023.

It is quite evident how the Modi government's PLI scheme has revolutionised mobile manufacturing in India. Once the same scheme is extended to IT server and hardware production companies, India could become a leading manufacturer in that sector as well. The demand for IT servers and hardware has gone up exponentially, especially after the advent of high speed internet.

Additionally, since more and more people are accessing the internet, the demand for IT servers and hardware from the internet service providers is going only to increase further in the coming years. India would want to utilize the opportunity to up its manufacturing and reduce its reliance on imported IT server and hardware products.

Semiconductor manufacturing hub

The minister also hoped that with sufficient promotion, the nation could become a semiconductor manufacturing hub in the coming decades. Since the Modi government has already taken several steps in this regard, it may happen sooner than later. Out of several decisions that have been made to promote semiconductor manufacturing in India, earmarking $10 billion is the most important step.

The government policy is to invest, promote and accelerate production in the semiconductor sector under its ambitious 'Bharat Semiconductor Mission'. Chandrasekhar indicated that in the coming couple of years, the nation will start manufacturing semiconductors. Especially, as the government has decided to invest $200 billion in startups developing next generation applications, there will be a massive elevation to the sector and overall economy.

PLI scheme working well for mobile industry

There was a great imbalance between India and China trade, especially on the front of mobile imports. The Modi government has been able to fill that gap quite significantly with its PLI scheme. The policy implementation has been done at a war-footing level and by April 2022, a total of 32 entities have been made beneficiaries of the scheme.

The outcome of this is that today India is one of the largest mobile phone manufacturers. Additionally, during April-October 2022, the country was able to export smartphones worth a total of $5 billion. Last but not the least, the government aims to replicate the experience and success in the IT servers and hardware sector.