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Renu Suresh

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Published on: Jul 30, 2026

Production Linked Incentive Scheme (PLI) for IT Hardware

The Ministry of Electronics and Information Technology (MEITY) has notified the PLI Scheme for IT Hardware on 3rd March 2021. The scheme proposes production-linked incentives to boost domestic manufacturing and attract large investments in the value chain of IT Hardware products. PLI Schemes will help in making India a globally competitive destination for electronics manufacturing and create domestic champions to further the mission of achieving an

AtmaNirbhar Bharat. Click here to know more about MeitY Incentives for Electronics Manufacturers

The objective of the PLI Scheme for IT Hardware

The Production Linked Incentive Scheme (PLI) for IT Hardware proposes a financial incentive to boost domestic manufacturing and attract large

investments in the value chain.

Target Segment

The Target Segment under the PLI scheme for IT Hardware will include the following:

  • Laptops
  • Tablets
  • All-in-One PCs
  • Servers

Tenure of the scheme

Support under the PLI Scheme will be provided for a period of 4 years from the financial year 2021-2022 with the base year as the financial year 2019-2020.

Eligibility Criteria

  • Support under the PLI Scheme will  be provided to companies based on the eligibility criteria laid down, for the manufacturing of goods (covered under the target segment) in India
  • Eligibility shall be subject to thresholds of incremental investment and net incremental sales of manufactured goods (covered under the target segment).
  • An applicant must meet all the threshold conditions to be eligible for disbursement of incentive. Eligibility threshold criteria are detailed below:
PLI Scheme for IT Hardware -Threshold criteria PLI Scheme for IT Hardware -Threshold criteria

Quantum of Incentive

The PLI Scheme for IT Hardware shall extend an incentive of 4% to 2% / 1% on net incremental sales (over a base year) of goods manufactured in India and covered under the target segment, to eligible companies, for four (4) years. The expected annual incentive outlay and cumulative incentive outlay under the PLI Scheme for IT hardware are as follows:

Financial Year

Total Incentive (Crore)
Year 1 720
Year 2 1305
Year 3 1820
Year 4 3480
Total 7325

Incentive Per Company

The incentive per company will be applicable on net incremental sales of manufactured goods (covered under the Target Segment) over the base year subject to indicative ceilings as provided below.

PLI Scheme for IT Hardware -Incentive PLI Scheme for IT Hardware -Incentive At the end of each year, any inappropriate incentive amount resulting from underperformance concerning the prescribed annual ceiling on net incremental sales of eligible products, by any applicant(s) in any category, will be allocated to the remaining eligible applicants under such category who have achieved net incremental sales over the annual ceiling.

Localization Plan

Manufactured Goods covered under the Target Segment, the net sales of which are considered for determining eligibility and incentive amount due under the Scheme must meet the following criteria for localization:

Sl.No Timeline Sub- in  to be localized Criteria Applicable incentive
1 01 April 2021 Not Applicable 4%
2 01 April 2022 onwards PCB Assembly Assembled domestically by the applicant company itself 3%
3 01 April 2023 onwards Battery Packs Assembled domestically, either by the applicant company itself or through one of its vendors. (not applicable for All-in-One PCs and Servers) 2%
4 01 April 2024 onwards Power Adaptors / SMPS Cabinets / Chassis / Enclosures Assembled domestically, either by the applicant company itself or through one of its vendors. 2%
OR
  01 April 2024 onwards Power Adaptors / SMPS Assembled domestically, either by the applicant company itself or through one of its vendors. 1%

Application  Procedure

An application under the PLI Scheme can be made by any company registered in India. The applicant needs to access the

official webpage of the Production Linked Incentive Scheme (PLI) for IT Hardware.
  • The applicant needs to login into the portal using CIN as a user ID. After login into the portal, provide all details in the application.
  • An initial application, complete in all aspects, will have to be submitted before the due date to the Project Management Agency.
  • The acknowledgment will be issued by the Project Management Agency after initial scrutiny of the application. The acknowledgment shall not be construed as approval under PLI Scheme
  • Eligible applications will be appraised by Project Management Agency on an ongoing basis and considered for approval.  Applications, as found eligible by the Project Management Agency under the Scheme will be recommended for approval of the Minister-in-Charge.
  • Claims for release of incentives, as examined and recommended by the Project Management Agency, will be considered for disbursement.
  • Incentives shall be released to eligible applicants who are meeting the required thresholds and whose disbursement claims are found to be in order.
 
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Frequently Asked Questions

Common questions about Production Linked Incentive Scheme for IT Hardware.

The PLI Scheme for IT Hardware aims to provide financial incentives to boost domestic manufacturing and attract large investments in the value chain of IT Hardware products like laptops, tablets, all-in-one PCs, and servers in India. The incentives will be provided for a period of 4 years from the financial year 2021-2022.
The target segments covered under the PLI Scheme for IT Hardware include laptops, tablets, all-in-one PCs, and servers.
To be eligible for incentives under the PLI Scheme, companies must meet certain thresholds of incremental investment and net incremental sales of manufactured goods (covered under the target segment) in India. The eligibility thresholds vary based on the category of the applicant company.
The PLI Scheme will extend an incentive ranging from 4% to 1% on net incremental sales (over a base year) of goods manufactured in India and covered under the target segment, subject to indicative ceilings based on the category of the applicant company.
The scheme has a localization plan that requires companies to gradually increase domestic assembly of components like PCB assembly, battery packs, power adaptors/SMPS, cabinets/chassis/enclosures to qualify for higher incentives over the four-year period.
Companies registered in India can apply for the PLI Scheme through the official webpage of the scheme. They need to log in using their CIN as a user ID and provide all required details in the application. The applications will be appraised and recommended by a Project Management Agency.
The expected annual incentive outlay under the PLI Scheme for IT Hardware ranges from ā‚¹720 crore in Year 1 to ā‚¹3,480 crore in Year 4, with a cumulative incentive outlay of ā‚¹7,325 crore over the four-year period.
The PLI Scheme for IT Hardware will provide support for a period of 4 years, starting from the financial year 2021-2022, with the base year being the financial year 2019-2020.
The incentives under the PLI Scheme will be disbursed to eligible applicants who meet the required thresholds and whose disbursement claims are found to be in order after examination and recommendation by the Project Management Agency.
The primary objective of the PLI Scheme for IT Hardware is to make India a globally competitive destination for electronics manufacturing and create domestic champions to further the mission of achieving an Atmanirbhar Bharat (self-reliant India) in the IT Hardware sector.