Continued strong momentum was seen in the "Tendering and Awarding" activity in the beginning of FY24 for April. And with improved incentives and outlay, the government aimsto push local manufacturing of IT hardwaresuch as laptops, tablets, desktops, and servers, among other products.
Capital Expenditure - Rise in tenders issuance-
Continued strong momentum was seen in the "Tendering and Awarding" activity in the beginning of FY24 for April.
A 32% YOY increase in issuance of tenders in April 2023 ( 1.07 lakhs crore) vis a vis April 2022 (81,157 crore) and in March 2023 tenders worth 1.11 lakh crore were issued .
For the entire FY 22- 23, it was at 13.66 lakh crore vs. 8.91 lakh crore in FY21-22.
PLI for cosumer dicretionary sector -
With improved incentives and outlay, the government aimsto push local manufacturing of IT hardwaresuch as laptops, tablets, desktops, and servers, among other products. This is in line with government's indication for global IT companies such as Dell, HP, Apple and Samsung to boost manufacturing in India.
The government has increased the outlay of PLI scheme by over 2x to Rs. 17,000 crore. In therevised scheme, the government has increased the duration of the scheme to six years with a provision to claim incentives inany of the six ye ars, increasing the incentive of the scheme to 5% from 2%, made investments flexible, allowed companies to even include investments made by their suppliers or contract manufacturers, and made provision for additional incentives of 3-4% if the companies use locally manufactured components. Companies that are already a part of the first phase of PLI scheme will be the given the option to migrate to the new scheme.
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