Government approves Production Linked Incentive Scheme for IT Hardware and Pharmaceuticals

Union Cabinet approved Production Linked Incentive Scheme for IT Hardware. The scheme proposes incentives to boost domestic manufacturing and attract large investments in the value chain of IT Hardware. Briefing the media, Communication and IT Minister Ravi Shankar Prasad said the target segments of the scheme include laptops, tablets, all-in-one PCs and servers. Mr Prasad said, the total cost of the proposed scheme is around Rs 7,350 crore over four years. Mr. Prasad added that the scheme has direct and indirect employment generation potential of over one lakh 80 thousand.

The Union Cabinet also approved Production Linked Incentive (PLI) Scheme for Pharmaceuticals over a period of Financial Year 2020-21 to 2028-29.The Scheme will benefit domestic manufacturers, help in creating employment and is expected to contribute to the availability of a wider range of affordable medicines for consumers.

The scheme is expected to promote the production of high value products in the country and increase the value addition in exports. Under the scheme, a total incremental sales of Rs 2,94,000 crore and total incremental exports of Rs 1,96,000 crore  are estimated during six years from 2022-23 to 2027-28, The scheme will be part of the umbrella scheme for the Development of Pharmaceutical Industry. The objective of the scheme is to enhance India’s manufacturing capabilities by increasing investment and production in the sector and contributing to product diversification to high value goods in the pharmaceutical sector.