Revamp of IT Hardware PLI Scheme Expected by FY27
MeitY to revamp IT hardware PLI later this year, say officials
The Economic TimesImage: The Economic Times
The Indian Ministry of Electronics and Information Technology (MeitY) plans to modify the ₹17,000 crore (approximately $2.05 billion USD) Production Linked Incentive (PLI) scheme for IT hardware in late FY27. This update aims to include artificial intelligence (AI) servers and enhance support for domestic manufacturing as claims from participating companies are set to increase significantly.
- 01The IT hardware PLI scheme may be revamped in late FY27.
- 02Incentive payouts are expected to rise significantly from ₹82 crore (about $10 million USD).
- 03AI-linked hardware products will be included in the revised scheme.
- 04The first PLI scheme for IT hardware was launched in 2021, with a second iteration in 2023.
- 05Major global tech companies like Dell and HP are among the 27 approved applicants.
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The Indian government is set to revamp the ₹17,000 crore (approximately $2.05 billion USD) Production Linked Incentive (PLI) scheme for information technology (IT) hardware in late FY27, as per officials from the Ministry of Electronics and Information Technology (MeitY). The changes will likely include coverage for artificial intelligence (AI) servers and related hardware products. Currently, the scheme has seen limited disbursement, with payouts totaling only ₹82 crore (around $10 million USD). However, as many participants selected FY25 as their first production year, claims are expected to surge this year. The initial PLI scheme for IT hardware was introduced in 2021, followed by a second iteration in 2023 aimed at fostering a robust domestic manufacturing ecosystem for devices such as laptops, tablets, and servers. Notably, the scheme has attracted 27 approved applicants, including major global tech firms like Dell, HP, and Lenovo, as well as domestic manufacturers like Dixon Technologies and Sahasra Electronic Solutions.
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The revamp of the PLI scheme is expected to boost domestic manufacturing and create job opportunities in the IT hardware sector.
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