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NEW DELHI: The union cabinet headed by Prime Minister Narendra Modi on Wednesday approved a production-linked incentive (PLI) scheme for consumer products such as laptops, tablets, all-in one PCs and servers to boost local manufacturing and cut India’s dependence on imports of such items.

Total incentive worth 7,325 crore will be given under the scheme that proposes sops to boost domestic manufacturing and attract large investments in the value chain of IT hardware.

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The government estimates production worth 3.26 trillion over the next five years by top five global companies manufacturing laptops and tablets.

“Production linked incentive is a very simple term. Come to India, invest in India, set up your factory, manufacture produce, export outside and earn incentive," electronics and information technology minister Ravi Shankar Prasad told reporters. “We have already discussed the scheme with the manufacturers."

In November, the government said it will offer incentives worth 1.46 trillion to 10 sectors, including for manufacture of automobiles and solar panels, after the success of the scheme for production of mobile phones launched in April 2020.

“India is expected to have a USD 1 trillion digital economy by 2025. Additionally, the government’s push for data localization, Internet of Things market in India, projects such as smart city and digital India are expected to increase the demand for electronic products. The PLI scheme will boost the production of electronic products in India," the government had then said.

Sixteen global and domestic mobile phone and electronic component makers including Samsung, Foxconn and Bhagwati Products -- the maker of Micromax phones -- have already received the Centre’s approval for the PLI scheme that was launched in April to boost local manufacturing. The other eligible international phone makers are Rising Star, Wistron and Pegatron.

Last week, the cabinet offered telecom and networking equipment companies incentives worth 12,195 crore to boost local manufacturing.

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