Modi’s Masterstroke? We’ll know by 30 August 🗓️
The reality behind the sudden curbs on the import of laptops & tablets 👇
After the roaring success of the smartphone PLI, the Govt rolled out a Rs 7k crore IT hardware PLI scheme.
🔆 This was meant to attract the makers of laptops, tablets, servers etc to make in India
🔆 Key targets were Apple, HP, Hewlett Packard Enterprise, Dell Technologies, Lenovo, Samsung Electronics, ASUS, Acer etc
But, the scheme tanked 📛📛
..
So, Govt came up with a revised scheme.
✅ Extended the scheme length from 4 to 6yrs
✅ Increased the bounty size from Rs 7k cr to Rs 17k cr
✅ Increased the incentive from 4% of incremental sales to 7-9% based on product category
..
Scheme was approved on 17 May, the application window opened on 1 June & deadline was set for 31 July.
But, most companies still didn’t apply. Worse, the biggest player which Govt wanted to woo- Apple- Didn’t apply 📛📛
..
That’s when the Govt got on the offensive.
Cuz, unlike the Rs 7k crore scheme, the revised scheme was an outcome of industry consultations.
🔆 Govt said, first, let’s extend the application date. So, that was extended to 30 August
🔆 Next it said, let’s give the companies a taste of what happens if they don’t commit to make in India
Thus, hours after the PLI scheme review by Cabinet Secretary Rajiv Gauba on 3 Aug, Govt announced curbs on the import of tablets and laptops into India and made a license mandatory for the same.
And, after a day or so of panic, hue, cry & commentary, the Govt extended the implementation of the curbs to 1 Nov.
..
Here, the former bureaucrat took a pause & explained 👇
🔆 Intent was never to curb imports overnight and cause mayhem
🔆 Intent was to show companies what may happen to their biz in India, if and when the Govt actually imposes such curbs, which it ‘can’ do overnight
It’s a pressure tactic.
..
The bureaucrat continued. 👇
Now see, how the applications for the scheme will shore up with all the players running in.
Was this good? Morally, no. Ethically, no.
But, if companies do rush to invest & make in India, then it will turn out to be a great move.
..
But, why is the Govt going so hard on this?
🔆 The senior bureaucrat explained, the Govt is serious about bringing the biggest electronics manufacturers to make in India & start work on the same before the elections next year
🔆 That’ll be a big push for Indian manufacturing & will also help the Govt ahead of the elections
..
This has all been done to make IT hardware PLI 2.0 a roaring success.
Given the 30 Aug deadline, results will be out soon.