The introduction of PLI 2.0 demonstrates a significant shift towards strengthening the nation’s self-reliance in the tech industry. Government officials have even started discussions with several tech companies, including Apple, about producing iPads within the country.
As an IT firm, here is how PLI 2.0 can benefit you:
Increased production of IT hardware: One of the most significant advantages is the expected increase in domestic production of IT hardware. This boost in production will create a higher demand for these products from Indian IT firms, resulting in new revenue streams and growth opportunities. According to government projections, PLI 2.0 is expected to generate an incremental production of INR 3.35 trillion in IT hardware over the next six years. This growth is an excellent opportunity for Indian IT firms to capitalise on the increased availability of locally produced hardware.
Reduction in costs: The scheme incentivises manufacturers to establish production facilities within India’s borders, driving down the cost of IT hardware for Indian IT firms. This cost reduction will significantly enhance the profitability of IT companies and aligns with the expectations of the Indian Electronics and Semiconductor Association (IESA). IESA predicts that the Indian IT hardware market will grow from INR 2.4 lakh crore in 2022-23 to INR 5.25 lakh crore in 2026-27, offering Indian IT firms an exciting opportunity to streamline their operations and increase their competitiveness.
Boost competitive edge: With access to high-quality IT hardware at a reduced cost, IT firms can offer their services at more competitive prices. This enhanced cost-efficiency will attract a broader clientele, including customers from across the globe.
Job Creation: PLI 2.0 is expected to create 75,000 new jobs within the IT hardware sector. Establishing manufacturing facilities in India will generate an influx of skilled labour, serving as a valuable resource for Indian IT firms looking to fulfil their growing workforce requirements. This ripple effect in the job market is a positive spin-off of the PLI 2.0 scheme.
Thus, PLI 2.0 has the potential to be a game-changer for Indian IT firms, helping them establish robust data centres and IT infrastructure with domestically produced hardware, thereby reducing their dependence on foreign suppliers and improving security. Additionally, the opportunity to export domestically produced IT hardware promises to earn valuable foreign exchange and significantly bolster the global presence of these Indian IT companies.
In essence, PLI 2.0 is not just an initiative; it’s a gateway to a future where Indian IT firms stand strong, innovative, and self-reliant on the global stage.