Data centres rely on a wide range of equipment, including computer hardware, telecom systems, and mechanical, electrical, and cooling infrastructure. The Government of India’s electronics and semiconductor policies are guided by the Hon’ble Prime Minister’s vision of Aatma Nirbhar Bharat and Make in India.

The global electronics manufacturing supply chain involves multiple countries and companies. India’s policy approach is to progressively develop the domestic manufacturing supply chain for data-centre equipment and components.

As part of this strategy, the ecosystem in India is expanding rapidly through initiatives such as the Electronics Components Manufacturing Scheme (ECMS), Semicon India Programme, PLI for Large Scale Electronics Manufacturing, PLI for IT Hardware, SPECS, and Electronics Manufacturing Clusters (EMC/ EMC 2.0).

The relevant policies of the government of India to promote the manufacturing of data-centre devices, equipment, and components are as follows:

PLI Scheme for IT Hardware

The scheme promotes the domestic production of servers, laptops, tablets, all-in-one (AIO) PCs, and ultra small form factor (USFF) devices.

Electronics Components Manufacturing Scheme (ECMS)

ECMS covers optical transceivers and passive components used in servers, routers, and networking systems. The government has received encouraging response from the industry for manufacturing these.

PLI for Telecom & Networking Products

PLI scheme for telecom equipment, incentivising the local production of routers, switches and other networking gear, which form an essential part of data-centre and server infrastructure

To further strengthen the supply-chain security and transparency, CERT-In issued technical BOM guidelines in July 2025 for software, hardware, AI, quantum and cryptography components.

Design Linked Incentive (DLI)

To leverage India’s strength in chip design, Government has launched DLI Scheme. Support has been provided for 24 chips and System on Chips (SoCs) for satellite communication, drones, surveillance cameras, Internet of Things (IoT) devices, LEDs driver, AI devices, telecom equipment, smart metres, etc.

National Supercomputing Mission (NSM)

Under NSM, CDAC has designed and developed the indigenous server “Rudra.” This Rudra server has been customised by the industry partners for meeting the data center server requirements.

Further, MeitY has notified the server under the Public Procurement (Preference to Make in India) Order (PPO) to aggregate government demand and to increase domestic value addition vide notification dated 12.10.2023.

(This statement was given by Minister of State for Electronics and Information Technology Shri Jitin Prasada in Rajya Sabha today.)

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