Asus, Dell, HP, and Foxconn are among the 38 companies that have applied to the Centre’s production-linked incentive (PLI) plan for IT hardware to Manufacture Laptops, Personal Computers, and servers in India. Apple, on the other hand, has decided not to participate in the arrangement.

Details on Under the PLI initiative, 38 IT firms have applied to manufacture laptops and PCs

The development comes only weeks after the Centre imposed – and then delayed – a license requirement on the import of laptops and personal computers, causing major electronics gear makers to panic. The relocation was postponed until October 31.

While the scheme’s predicted incremental production at the end of six years is estimated to be Rs 3.35 lakh crore, it could result in an incremental investment of only Rs 4,000 crore during those six years. According to Union Minister for Electronics and IT Ashwini Vaishnaw, the manufacturing process will create 75,000 direct jobs.

Lenovo, Acer, and Flex, which is thought to be manufacturing Reliance’s JioBook laptop, are among the other companies that have registered for the plan. HP Enterprises (HPE) has also applied for server manufacture in India.

Two senior officials from the IT Ministry claimed a day after the import restriction was enforced that as of August 4, just two businesses had applied to participate in the IT hardware PLI, which was extended in May this year, with 44 companies having registered with an intent to apply. After 26 days, the number of applicants increased by 36, bringing the total to 38. The application deadline was August 30.

Since it was first approved in 2021 with an outlay of Rs 7,350 crore, the Centre has more than increased the IT Hardware PLI to Rs 17,000 crore in May this year. The initial iteration of the scheme was a flop, with only two companies – Dell and Bhagwati – meeting first-year (FY22) expectations, prompting the sector to call for a new scheme with a larger budgetary investment.

The average reward over six years will be around 5% of net incremental sales, up from 2% over four years previously. Companies who produce specific components domestically, such as memory modules, solid-state drives, and display panels, will also benefit from the reorganized plan. There will also be some leeway in selecting the base year. Officials estimated that the entire benefits, based on company sales predictions, may total Rs 22,880 crore.

Dell, the only major brand to engage in the previous edition of the program, is said to be migrating to the new plan. However, the government must pay the corporation around Rs 50 crore for its production under the initial contract.

In answer to The Indian Express’s question on whether the import limit boosted applications for the PLI scheme, Vaishnaw stated, “I asked them (the applicants) the concern, people don’t have any concerns.”

The Indian Express previously reported on the confusion that erupted at some of the largest IT companies following the Director General of Foreign Trade (DGFT) notification of import restrictions, with corporations such as Apple and Samsung suspending their Imports until further clarity was provided. Due to the urgency of the mandate, some manufacturers’ shipments were also held at customs.

Earlier this month, industry organisations representing businesses such as Apple, Dell, and HP wrote to the US government, condemning New Delhi’s decision and requesting its assistance to begin a dialogue with the Indian government and urge New Delhi to reconsider the policy.

In recent years, India has seen a surge in imports of electronic items and laptops/computers. Electronic products imports grew to $6.96 billion in April-June this year, up from $4.73 billion the previous year, accounting for 4-7 percent of total imports.

The majority of India’s imports come from China in the seven categories where imports are banned. During April-May, the most recent period for which country-specific data is available, India’s imports from China for these seven categories of banned imports totaled $743.56 million, a 5.6% decrease from $787.84 million.

The category with the biggest share of imports is personal computers, including laptops and palmtops, with imports from China totaling $558.36 million in April-May this year, down from $618.26 million the previous year. China accounts for around 70-80 percent of India’s imports of personal computers and laptops.

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