New Delhi, May 17 :The Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday approved Rs 17,000 crore production-linked incentive (PLI) scheme 2.0 for IT hardware sector.

The PLI scheme for IT hardware covers laptops, tablets, all-in-one PCs, servers and ultra small form factor devices.

Briefing media on the Cabinet decision, Communications and Electronics & Information Technology Minister Ashwini Vaishnaw said the tenure of the PLI scheme would be six years and an investment of Rs 2,430 crore is estimated under the programme.

He said expected incremental production under the scheme is Rs 3.35 lakh crore.

Terming the PLI scheme as quite comprehensive, the Minister said the way things are moving the actual investment could be higher than expectations.

“Expected incremental direct employment is 75,000. As you are aware that the ratio of direct and indirect employment in electronics manufacturing is 1:3 so it roughly means more than 2 lakh employment would be generated,” he said.

He noted that due to focused action of PM Modi, electronics manufacturing has crossed a landmark of US$ 100 billion.

“Mobile exports also crossed a major landmark of US$ 10 billion. Last year, total mobile phone exports were US$ 11 billion. India has emerged as the second largest mobile phone manufacturing country in the world,” the Minister said.

“India is emerging as a trusted supply chain partner for all global majors. Large IT hardware companies have shown keen interest in establishing manufacturing facilities in India,” an official statement said.