What is the primary objective of the PLI Scheme 2.0 for IT Hardware?

The scheme aims to boost domestic manufacturing of IT hardware products like Laptops, Tablets, All-in-One PCs, Servers, and USFF devices in India, while also incentivizing incremental investment, localization, and employment generation.

Which products are covered under this scheme?

The scheme covers Laptops, Tablets, All-in-One Personal Computers (PCs), Servers, and Ultra Small Form Factor (USFF) devices, as well as components like PCBA, Display Panels, Memory Modules, SSD, Cabinets/Chassis/Enclosures, and SoC Processors designed in India.

Who is eligible to apply for this scheme?

Companies registered in India that propose to manufacture target segment goods, meet incremental investment and sales thresholds, and have specific consolidated global manufacturing revenue criteria (varying for Global vs. Domestic companies) are eligible. They must also localize PCBA and finished goods assembly from the first year.

What kind of financial incentive is offered?

The scheme provides financial incentives on net incremental sales of manufactured goods in India, with rates varying from 0.90% to 3.78% over six consecutive years, depending on the product or component.

How frequently can claims be filed?

Claims for incentives can be filed quarterly, half-yearly, or annually, providing flexibility for manufacturers to align with their operational cycles.

What happens if a company faces an investment shortfall?

If the investment shortfall is 40% or less of the threshold, incentives are still payable with a partial deduction, and any withheld incentive is refunded without interest once the investment threshold is met in a later year.

Production Linked Incentive Scheme (PLI) for IT Hardware Scheme 2.O

The Production Linked Incentive (PLI) Scheme 2.0 for IT Hardware, launched by the Ministry of Electronics and Information Technology (MeitY), Government of India, aims to significantly boost domestic manufacturing of IT hardware products. This initiative is designed to provide financial incentives to eligible companies that manufacture target segment goods within India. The scheme specifically covers products such as Laptops, Tablets, All-in-One Personal Computers (PCs), Servers, and Ultra Small Form Factor (USFF) devices. It targets Indian-registered companies, categorized as Global Companies, Hybrid (Global/Domestic) Companies, and Domestic Companies, that are actively involved in the production of qualifying IT hardware.

The core objectives of the PLI Scheme 2.0 for IT Hardware include fostering self-reliance and enhancing India's position as a global manufacturing hub for electronics. Beyond merely encouraging production, the scheme also aims to incentivize incremental investment in critical areas such as plant, machinery, equipment, Research and Development (R&D), and Transfer of Technology (ToT) directly related to the target segment. A key focus is on promoting deeper localization of components and sub-assemblies across the IT hardware value chain, thereby increasing domestic value addition. The scheme also seeks to generate substantial employment opportunities directly associated with the manufacturing process, contributing to economic growth and skill development within the country.

The PLI Scheme 2.0 provides substantial financial incentives on the net incremental sales of IT hardware products manufactured in India, applicable across a range of target segment goods including Laptops, Tablets, All-in-One PCs, Servers, and Ultra Small Form Factor (USFF) devices. Incentives are offered for 6 consecutive years within the scheme tenure. The incentive rates vary by product and component, ranging from 3% initially (for assembly of Laptops/Tablets/PCs/USFF/Servers) to 0% by Year 6. Specialized components like PCBA, Display Panels, Memory Modules, SSD, and Cabinets/Chassis/Enclosures receive rates from 0.90% to 1.49%. High-value items such as SoC Processors designed in India can attract incentives of 3.24% to 3.78%. Additional incentives are also available for Advanced Packaging (ATMP) and Integrated Circuit (IC) manufacturing in India. Companies can file claims quarterly, half-yearly, or annually, ensuring regular cash flow linked to their production growth. The scheme also includes provisions for investment shortfall relief, allowing incentives to be payable with partial deduction if the shortfall is within 40% of the threshold, with withheld incentives refunded once the investment target is met.

Production Linked Incentive Scheme (PLI) for IT Hardware Scheme 2.O

Production Linked Incentive Scheme (PLI) for IT Hardware Scheme 2.O

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