Interim budget boosts electronics PLI scheme, allocating Rs 6,200 crore for 2024-2025

The government has increased budget estimates for Ministry of Electronics and Information Technology's PLI Scheme in this year's budget.

The Indian government's production-linked incentive (PLI) scheme for large-scale electronics manufacturing received a major boost in this year's Budget with a nearly 1.5x increase, increasing its outlay to Rs 6,200 crore for 2024-2025.

Previously, the revised estimates for the Ministry of Electronics and Information Technology's (MeitY) PLI scheme stood at Rs 4,560 crore in 2023-2024. The original budget estimate for 2023-2024 was at Rs 4,645 crore.

Last year, 27 companies, including Dell, HP, Foxconn and Lenovo were approved for the PLI scheme for IT hardware, Minister for Electronics and Information Ashwini Vaishnaw had announced in November. As many as 40 companies, including Dell, HP, and Lenovo, had applied for the scheme.

The companies had made a commitment to make personal computers, laptops, tablets, servers, and other equipment worth Rs 4.65 lakh crore during the scheme period.

In May, the Cabinet approved a renewed PLI scheme for IT hardware worth Rs 17,000 crore with a six-year tenure, aimed at boosting the domestic manufacturing of electronic devices. It is anticipated that the scheme will stimulate incremental production worth Rs 3.35 lakh crore and create 2 lakh employment opportunities.