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The PLI scheme was launched in March 2020, with an aim to tremendously boost the electronics manufacturing landscape under the government's Atmanirbhar Bharat initiative, in attempts to establish India at the global level in the electronics sector. The scheme offers an incentive of 4-6% on incremental sales of goods manufactured in India. This scheme was well-received by the domestic companies as they have committed and invested more than Rs. 200 Crore in attempts to expand IT hardware manufacture.
Domestically knows companies in the IT sector like Bhagwati Products, Infopower Technologies, Dixon Technologies, and VVDN have already allocated more than Rs. 200 crores to increase the IT hardware manufacturing potential as apprised in the government's PLI scheme. Infopower, Bhagwati, and VVDN are already revamping their manufacturing resources, facilities and tools in the major IT product genre such as PC, tablets and laptops. According to reports, Dixon is on route to install its 13th factory in Noida, Uttar Pradesh and also aimed at starting full-fledged production of tablets and laptops in the next four months.
Not just the well-established brand but also homegrown firms are initiating efforts towards the scheme. A homegrown firm, the Bengaluru-based Smile Foundation will be launching its new plant at Hindupur in Andhra Pradesh by the completion of the ongoing fiscal year.
According to reports, Dixon's executive chairman Sunil Vachani said, "We have set aside an investment of Rs 25 crore over four years, of which Rs 10 crore will be spent in the first year in our new facility which will have a capacity of producing 500,000 laptops and 2.5 million tablets in a year,"
VVDN too is in plans of building up its current facility at Manesar in Haryana for which they have set aside approximately Rs. 100 crores. Though Bhagwati Products, the makers of Micromax phones, will invest Rs. 50 crores under the scheme. Reportedly, they are also negotiating and consulting certain big overseas brands for IT equipment like tablets and laptops, a final statement regarding the same will be issued in a month.
Nonetheless, the Indian companies are quite stiff and confident regarding the completion of targets for the opening year even after the three-month delay in final approval letters under the government's PLI scheme. However, several industries and companies have reportedly asked the government to improvise the PLI scheme's financial aspects and remodel the low incentive structure. The companies are optimistic with hopes of an increase in allocation upon notable developments being made in the final output.