Boost to employment! Govt approves PLI Scheme for IT Hardware and Pharmaceuticals

New Delhi, February 25: Taking the steps to attract the large investment in the value chain of IT hardware, Union Cabinet on Wednesday approved a production-linked Incentive scheme for IT Hardware. The Scheme will not only boost the domestic but it will also help in creating employment.

 

 

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. The total cost of the proposed scheme is approximately Rs.7,350 crore over 4 years. The budget includes an incentive outlay of Rs.7,325 crore and administrative charges of Rs 25 crore.

This scheme has a potential to generate direct and indirect employment of over 1,80,000 in over 4 years. The scheme will also provide impetus to Domestic Value Addition for IT Hardware for which there is an expectation that it will rise to 20% – 25% by 2025.

 

Telecom Minister Ravi Shankar Prasad, said, "Rs 30,000 crore worth of laptops and Rs 3,000 crore worth of tablets are currently sold in India. Of this, more than 80 percent is imported. As a result of the latest PLI, the government hopes to draw to India the top 5 global companies which control 50 per cent of the international market. A total Rs 3,26,00 crore worth of production will be achieved, of which 75 percent will be made up by exports."

 

The scheme has an employment generation potential of over 1,80,000 (direct and indirect) over 4 years. The Scheme will provide impetus to Domestic Value Addition for IT Hardware which is expected to rise to 20% - 25% by 2025.

 

Apart from it the goverment has also give the boost to the Pharmaceutial sector. With that, Union Cabinet also approved Production Linked Incentive (PLI) Scheme for Pharmaceutical. The scheme is expected to promote the production of high-value products in the country and increase the value addition in exports. 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 is expected to generate employment for both skilled and un-skilled personnel, estimated at 20,000 direct and 80,000 indirect jobs as a result of growth in the sector.

 

It is expected to promote innovation for the development of complex and high-tech products including products of emerging therapies and in-vitro Diagnostic Devices as also self-reliance in important drugs. It is also expected to improve the accessibility and affordability of medical products including orphan drugs to the Indian population. The Scheme is also expected to bring in investment of Rs.15,000 crore in the pharmaceutical sector.

 

The scheme will be part of the umbrella scheme for the Development of the 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. One of the further objectives of the scheme is to create global champions out of India who has the potential to grow in size and scale using cutting edge technology and thereby penetrate the global value chains.

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