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PLI 2.0 fueling India's IT Hardware Revolution

Published: Jan 13, 2025

By TIOLCorplaws News Service

NEW DELHI, JAN 13, 2025: IN a groundbreaking development for India's electronics manufacturing sector, Union Minister of Electronics and Information Technology, Railways, and Information & Broadcasting Ashwini Vaishnaw inaugurated Syrma SGS Technology 's state-of-the-art laptop assembly line in Chennai on Saturday.

This facility, located in the Madras Export Processing Zone (MEPZ), marks a pivotal shift in India's 'Make in India' journey, extending its dominance from mobile phones to IT hardware manufacturing especially the Laptops.

A Milestone in 'Make in India'

The new assembly line will initially produce 100,000 laptops annually, with a scalable capacity of up to 1 million units within the next 1-2 years. Syrma SGS currently operates four manufacturing units in Chennai, with its Unit 3 now initiating laptop production.

Speaking at the inauguration, Ashwini Vaishnaw said, "We must work meticulously to ensure that the electronic component ecosystem is also developed in the coming time. This will not only drive a major growth story for India but also align with our vision of Atmanirbhar Bharat, fostering self-reliance and strengthening our position in the global electronics manufacturing landscape."

The initiative, part of the PLI 2.0 scheme for IT Hardware, highlights India's growing capabilities in high-value electronics production and reinforces the nation's self-reliance in IT hardware.

Key Highlights of the Assembly line

- Global Partnership: Syrma SGS has partnered with Micro-Star International (MSI), a leading Taiwanese technology company, to manufacture high-quality laptops in India, catering to both domestic and global markets.

- Boosting Local Economy: The facility is projected to generate 150-200 specialized jobs in electronics manufacturing by FY26, making a substantial impact on both Tamil Nadu's regional and India's national economy. These roles are anticipated to have a ripple effect, shaping and enhancing the future workforce in the sector.

- World-Class Standards: The laptops produced will meet international quality benchmarks, showcasing India's evolving technical and manufacturing prowess.

India's Rising Electronics Manufacturing Sector

India's electronics manufacturing sector has grown exponentially over the past decade, with total production increasing from Rs.2.4 lakh crore in 2014 to Rs.9.8 lakh crore in 2024. Mobile manufacturing alone has reached Rs.4.4 lakh crore, with exports at Rs.1.5 lakh crore in 2024. 98% of the mobile phones used in India are now being manufactured in India with Smartphones becoming the fourth largest export item from India.

Tamil Nadu: A Key Contributor

Tamil Nadu has over 47 manufacturing units supported under various schemes of the Ministry of Electronics and Information Technology (MeitY). The state is one of the largest beneficiaries of the Production Linked Incentive (PLI) scheme for Large Scale Electronics Manufacturing, with seven out of the 27 approved units under PLI 2.0 located here. The first unit under this initiative was inaugurated yesterday.

Additionally, Tamil Nadu has seen significant support through programs such as Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), with four applications receiving MeitY backing of Rs.1,200 crore, and Modified Special Incentive Package Scheme (M-SIPS), which has attracted 33 applications with an investment potential of Rs.15,000 crore, supported by Rs.1,500 crore from MeitY. Together, these initiatives have enabled companies in Tamil Nadu to achieve a total production exceeding Rs.1.3 lakh crore to date.

The state is also home to the Electronics Manufacturing Cluster (EMC) at Pillaipakkam Village, Sriperumbudur, established by M/s State Industries Promotion Corporation of Tamil Nadu (SIPCOT). With a project cost of Rs.420 crore, including Rs.210 crore in support from the Government of India, this cluster is expected to attract investments worth Rs.8,700 crore and create 36,300 jobs. Tamil Nadu contributes around 30% of India's electronics exports, underscoring its pivotal role in the sector. Notably, the latest iPhone 16 Pro is proudly "Made in India" and manufactured in Tamil Nadu.

Scheme-wise beneficiaries in the state of Tamil Nadu can be accessed from here

A Bright Future for laptop manufacturing Manufacturing

The inauguration of Syrma SGS's laptop assembly line marks a new chapter in India's electronics journey, paving the way for reduced dependency on imports, enhanced employment opportunities, and world-class manufacturing capabilities. As the facility ramps up production, India is poised to become a global leader in IT hardware manufacturing.

Status of PLI 2.0 for IT Hardware

The Production Linked Incentive (PLI) 2.0 for IT Hardware, launched on May 29, 2023, aims to further strengthen India's electronics manufacturing ecosystem by offering a 5% incentive to eligible companies.

The scheme covers products like laptops, tablets, all-in-one PCs, servers, and ultra-small form factor devices. With a projected investment of Rs.3,000 crore, PLI 2.0 is expected to drive production worth Rs.3.5 lakh crore and generate 47,000 jobs across the country.

The scheme has already achieved remarkable progress, with total investments of Rs.520 crore, production worth Rs.10,000 crore, and has generated 3,900 jobs (As on Dec 2024).

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