Meity to keep ₹7.k cr outlay for IT hardware products
The government may keep an outlay of ₹7,500 crore under the production linked incentive scheme for IT hardware products. Foreign companies looking for incentives under the scheme may have to invest ₹500 crore over four years. Threshold for domestic firms is to be around ₹20 crore for 5 years
PremiumThe government may keep an outlay of ₹7,500 crore under the production linked incentive scheme for IT hardware products like personal computers, laptops, tablets and servers, according to a source aware of the development.
Foreign companies looking for incentives under the scheme may have to invest ₹500 crore over four years, while the threshold for domestic firms is likely to be around ₹20 crore for five years, the source who did not wish to be named said.
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"Meity (Ministry of Electronics and Information Technology) will take the Cabinet approval of the detailed guidelines soon and is hopeful of rolling out the scheme from next financial year. The incentive outlay is likely to be around ₹7,500 crore," the source said.
The government has announced a cumulative production linked incentive of ₹2 lakh crore for 10 sectors to encourage domestic manufacturing after seeing traction of global giants like Apple's contract manufacturers, Samsung etc for the scheme in the mobile devices segment.
According to mobile devices industry body ICEA, India has the potential to scale up its cumulative laptop and tablet manufacturing capacity to over ₹7 lakh crore by 2025 through policy interventions.
Scaling up laptop and tablet PC manufacturing can take the share of India in the global market to 26 per cent from 1 per cent at present.
Besides, it will generate 5 lakh new jobs and lead to a cumulative inflow of foreign exchange to the tune of ₹5.5 lakh crore and investment of over ₹7,300 crore by 2025. PTI PRS ANZ BAL
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