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IT hardware manufacturers flag PLI investment clause; cite demand issues

The IT manufacturers have said that they have underutilised capacities that first need to be used up before they can commit to further expansion

Topics
Foxconn | Hewlett Packard | Dixon Technologies

BS Web Team  |  New Delhi 



phone, mobile manufacturing, PLI scheme
Representative Image

Foxconn, HP, and have requested the government drop the proposed requirement of fresh investments in order to avail of the production-linked incentive (PLI) scheme being prepared for the industry, The Economic Times (ET) has reported.

The IT manufacturers have said that they have underutilised capacities that first need to be used up before they can commit to further expansion. They added that the capacity expansion does not make sense as global PC and tablet sales have been steadily declining.

Earlier in a meeting of officials from the ministry of electronics and (MeitY), they had insisted on including the investment clause. They reasoned that it ought to be done to maintain consistency in the for other categories. The officials sought assurances from the industry to meet the proposed targets, ET reported, quoting people aware of the development.

The companies attending the meeting included subsidiary Bharat FIH, HP, Dixon Technologies, Infopower Technologies, Bhagwati Products (Micromax), the Manufacturers Association of (MAIT), and the India Cellular and Electronics Association (ICEA).

An executive familiar with the discussions between the government and the industry said that 80 per cent of the discussions have been finalised. He also said that the government finds it difficult to give IT manufacturers a concession since the for all other domains is attached to production capacity expansion.


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First Published: Thu, March 16 2023. 15:05 IST

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