Executive Summary:
The Ministry of Electronics and Information Technology (MeitY) addresses questions regarding IT hardware manufacturing units in India, with a focus on Tamil Nadu and the Dharmapuri constituency. The response highlights the Production Linked Incentive (PLI) Scheme 2.0 for IT Hardware launched on May 29, 2023, to boost domestic manufacturing and attract investments. It also outlines various government initiatives to promote balanced regional distribution of electronics manufacturing.
Key Points / Main Content:
Government Initiatives for Electronics Manufacturing:
* PLI Scheme 2.0 for IT Hardware: Launched on May 29, 2023, to boost domestic manufacturing and attract investments in the IT hardware value chain. 27 companies have been approved under this scheme.
* Other Initiatives: Production Linked Incentives (PLI) for large-scale electronics manufacturing, PLI for IT hardware, Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), Electronics Manufacturing Clusters (EMC) and EMC 2.0 Scheme, Public Procurement Preference to Make in India Order 2017, and reforms in taxation.
IT Hardware Manufacturing Units:
* Units Established: 10 manufacturing units have been established in the last three years under the PLI Scheme.
* Location Decisions: Companies choose locations based on supply chain linkage, infrastructure support, and ease of doing business measures provided by states.
Electronics Manufacturing Clusters (EMC) Scheme:
* Objective: To create world-class infrastructure with common facilities for attracting global electronics manufacturers.
* Pan-India Initiative: EMC and Modified EMC (EMC 2.0) schemes are Pan India initiatives.
* Cluster Approvals: A total of 22 clusters under EMC and 11 clusters under EMC 2.0 have been approved in 18 states.
* Tamil Nadu Clusters: Two clusters approved in Tamil Nadu: Pillaipakkam Village (Sriperumbudur Taluk, Kancheepuram District) and Manallur (Tiruvallur District).
Impact Analysis:
Companies in the IT Hardware Value Chain:
* Impact: Potential beneficiaries of the PLI Scheme 2.0 and other government incentives, with opportunities for increased domestic manufacturing and investment.
* Action Required: Evaluate the incentives, assess feasibility based on their supply chain, infrastructure needs, and engage with states offering favorable business environments.
State Governments:
* Impact: Expected to provide infrastructure support and ease of doing business measures to attract electronics manufacturing units.
* Action Required: Enhance infrastructure, streamline regulatory processes, and promote their state as an attractive destination for electronics manufacturing.
Electronics Manufacturing Cluster (EMC) Stakeholders:
* Impact: Benefit from world-class infrastructure and common facilities.
* Action Required: Utilize the infrastructure and facilities provided by the EMCs to enhance their production capabilities and supply chain efficiencies.
Key Entities Referenced
Ministry of Electronics and Information Technology: The Indian government ministry responsible for electronics and information technology.
PLI Scheme 2.0 for IT Hardware: Production Linked Incentive Scheme 2.0 for IT Hardware, launched by MeitY to boost domestic manufacturing and attract large investments in the IT Hardware value chain.
Tamil Nadu: A state in southern India, mentioned in the context of IT hardware manufacturing units and electronics manufacturing clusters.
Dharmapuri: A district in Tamil Nadu, mentioned in the context of establishing electronics/IT hardware units and balanced regional distribution of electronics manufacturing.
Electronics Manufacturing Clusters EMC: Scheme to create world class infrastructure along with common facilities for attracting major global electronics manufacturers.
Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors SPECS: Government initiative to promote manufacturing of electronic components and semiconductors.
Production linked incentives PLI for large scale electronics manufacturing: Government initiative to provide production linked incentives for large scale electronics manufacturing.
Public Procurement Preference to Make in India Order 2017: Government order to prioritize domestically manufactured products in public procurement.
GOVERNMENT OF INDIA
MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY
LOK SABHA
UNSTARRED QUESTION NO. 1751
TO BE ANSWERED ON: 30.07.2025
IT HARDWARE MANUFACTURING UNITS
1751. SHRI MANI A:
Will the Minister of ELECTRONICS AND INFORMATION TECHNOLOGY be pleased to state:
(a) the total number of IT hardware manufacturing units established in the country during the last three
years along with the number of such units set up in the State of Tamil Nadu during the same period;
(b) whether any such manufacturing units have been established, proposed or approved in or around the
Dharmapuri Lok Sabha constituency and if so, the details thereof including location, investment size,
employment generated and expected production capacity;
(c) whether the Government has undertaken or proposes to undertake feasibility studies or site assessments
for establishing electronics/IT hardware units in Dharmapuri district; and
(d) the details of the steps being taken by the Government to promote balanced regional distribution of
electronics manufacturing clusters especially in Tier-2 and Tier-3 districts like Dharmapuri in Tamil
Nadu?
ANSWER
MINISTER OF STATE FOR ELECTRONICS AND INFORMATION TECHNOLOGY
(SHRI JITIN PRASADA)
(a) to (d): With an objective to boost domestic manufacturing and attract large investments in the IT
Hardware value chain, MeitY launched PLI Scheme 2.0 for IT Hardware on 29.05.2023. Under this
scheme, 27 companies have been approved. Out of these, 10 manufacturing units have been established
in last 3 years as per details at Annexure I.
To promote balanced regional distribution of electronics manufacturing Government have launched
various initiatives in last ten years which resulted in establishment of a strong electronics manufacturing
ecosystem in India.
Government initiatives that made such transformation possible include:
• Production linked incentives (PLI) for large scale electronics manufacturing
• Production linked incentives (PLI) for IT hardware
• Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS)
• Electronics Manufacturing Clusters (EMC and EMC 2.0) Scheme
• Public Procurement (Preference to Make in India) Order 2017 to prioritize domestically
manufactured products in public procurement
• Reforms in taxation including rationalization of tariff structure, exemption on basic custom duty
on capital goods, etc.
However, the locations of electronics manufacturing units are chosen by the companies based on supply
chain linkage, infra structure support and other ease of doing measures provided by the states. Further,
Government of India notified the EMC and Modified EMC (EMC 2.0) schemes to create world classinfrastructure along with common facilities and amenities including plug and play facility /ready built-up
sheds for attracting major global electronics manufacturers along with their supply chains to set up their
production facility in the country. These schemes are Pan India initiatives and total 22 clusters in EMC
and 11 clusters in EMC 2.0 have been approved in 18 states across India including 2 clusters approved in
state of Tamil Nadu. The details are enclosed at Annexure-II.
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Annexure – I
List of manufacturing units under PLI Schemes for IT Hardware established in last 3 years
S. No. Company State Year
Neolync Tele Communications Private
1. Andhra Pradesh 2022
Limited
2. Plumage Solutions Private Limited Puducherry 2023
Kaynes Electronics Manufacturing Private
3. Karnataka 2023
Limited
4. Smile Electronics Limited Tamil Nadu 2024
5. Bhagwati Products Limited Uttar Pradesh 2024
6. Netweb Technologies India Limited Haryana 2024
7. Goodworth Electronics Private Limited Uttar Pradesh 2024
8. VVDN Technologies Private Limited Haryana 2024
9. Syrma SGS Technologies Ltd. Tamil Nadu 2025
10. HLBS Tech Private Limited Madhya Pradesh 2025
Annexure – II
Details of Clusters approved in Tamil Nadu
S. No. Location Area Implementing Project GIA
agency Cost
(Rs. in
(Rs. in Cr.)
Cr.)
1 Pillaipakkam (Village), 379.3 State Industries 424.55 212.27
Sriperumbudur Taluk Promotion
(Taluk), Kancheepuram Corporation of Tamil
(District) Nadu (SIPCOT)2 Manallur, Tiruvallur District 474.3 587.47 293.74
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