Indian Government Eyes $20 billion Local Sourcing for IT Parts

Indian Government Eyes $20 billion Local Sourcing for IT Parts

The Government of India is reportedly taking significant steps to promote the local sourcing of components for laptops and servers to around $20 billion over the next four years – a considerable increase compared to the current $1 billion procurement – to reduce reliance on imports and boost domestic manufacturing in the technology sector.

The move to promote local component sourcing aligns with broader efforts to boost India’s manufacturing sector and make a self-reliant and resilient domestic manufacturing ecosystem, say media reports.

The Centre has taken several initiatives to establish a strong ecosystem for device and server manufacturing within the country. These initiatives include the implementation of the Rs 17,000 crore production-linked incentive (PLI) scheme for IT hardware and the introduction of an “import management system,” which is set to begin on November 1.

The “import management system” is expected to play a role in regulating and managing imports, especially from ‘non-trusted sources,’ to support the “Make in India” initiative and strengthen the local manufacturing ecosystem.