PLI for IT Hardware — 1-4% Incentive on Incremental Sales

The Production Linked Incentive (PLI) Scheme for IT Hardware is a flagship initiative by the Ministry of Electronics and Information Technology (MeitY), Government of India. Its main goal is to turn India into a global manufacturing hub for IT hardware by boosting domestic production, attracting major investments, and cutting reliance on imports for critical products like laptops, tablets, all-in-one PCs, and servers.

The scheme rewards eligible companies with financial incentives that are directly tied to their incremental sales over a defined base year. This approach encourages both established global players and emerging domestic firms to set up new manufacturing units or expand existing ones in India. By doing so, the scheme aims to integrate Indian manufacturers into global supply chains, improve their competitiveness, and create significant employment opportunities across the manufacturing value chain.

The Project Management Agency (PMA) under MeitY oversees the implementation, ensuring guidelines are followed and incentives are disbursed on time. Ultimately, the scheme seeks to build a sustainable and self-reliant IT hardware ecosystem in the country.

• Incentives of 1-4% on incremental sales
• Applicable for 4 years
• Covers laptops, tablets, all-in-one PCs, and servers
• Boosts domestic value addition and reduces import dependency
• Open to both Global and Domestic Companies
• Implemented by PMA under MeitY

To apply, your company must be registered in India and engaged in manufacturing eligible IT hardware products such as laptops, tablets, all-in-one PCs, and servers. You must also meet the minimum investment thresholds specified under the scheme, achieve incremental production or sales targets, and comply with all conditions in the scheme guidelines.

Applicants are classified under two categories: Global Companies or Domestic Companies, each with its own investment and production thresholds. There are no restrictions on prior funding, so even startups that have raised capital can apply as long as they meet the manufacturing and investment criteria.

PLI for IT Hardware — 1-4% Incentive on Incremental Sales is open to startups at any stage. It is open to startups registered anywhere in India.

PLI for IT Hardware — 1-4% Incentive on Incremental Sales accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.

Eligible companies receive production-linked financial incentives calculated on net incremental sales (over a defined base year) of goods manufactured in India, specifically for target segments like laptops, tablets, all-in-one PCs, and servers. The incentive rate ranges from 1% to 4% and is applicable for a period of four years.

Beyond the direct cash incentive, the scheme provides significant market access by integrating Indian manufacturers into global supply chains and enhancing their competitiveness. Companies also benefit from implied regulatory support and a conducive policy environment designed to foster growth in the IT hardware sector.

Additionally, the scheme encourages capital investment and technological upgrades, helping build a sustainable manufacturing ecosystem within the country.

PLI for IT Hardware — 1-4% Incentive on Incremental Sales is offered by Ministry of Electronics and Information Technology (MeitY), a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India. You can verify current details and timelines on the provider's official website before applying.

The selection process begins with a rigorous evaluation by the Project Management Agency (PMA). Applications are screened for compliance with all eligibility criteria, including company registration, manufacturing focus, and commitment to meet investment thresholds and production targets.

During evaluation, the PMA assesses your submitted investment and production plans, financial information, and all supporting documents. You may be asked to provide clarifications or additional documents to support your application.

Based on the PMA's comprehensive evaluation and recommendation, final approval is granted by the concerned authority, ensuring only qualifying companies committed to enhancing domestic IT hardware manufacturing receive the incentives.

Before you apply to PLI for IT Hardware — 1-4% Incentive on Incremental Sales, keep the following documents ready:

• A pitch deck or short business plan describing the problem, product and traction
• Company registration documents and PAN
• Founder identification (PAN / Aadhaar) and brief profiles
• Recent financial statements or projections
• Product details — a demo, prototype or working link if available

Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.