PLI Scheme 2.0 for IT Hardware – Up to 3.78% Incentive for Indian Manufacturers
MeitY's PLI Scheme 2.0 provides financial incentives on incremental sales of laptops, tablets, PCs, servers, and USFF devices manufactured in India. Open to eligible Indian-registered companies.
- Funding amount
- Varies by program
- Funding type
- Subsidy
- Provider
- Ministry of Electronics and Information Technology (MeitY) (Government)
- Application deadline
- Rolling
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Overview
The Production Linked Incentive (PLI) Scheme 2.0 for IT Hardware, launched by the Ministry of Electronics and Information Technology (MeitY), is a government initiative to boost domestic manufacturing of IT hardware products. It offers financial incentives on the net incremental sales of goods manufactured in India, targeting products like Laptops, Tablets, All-in-One Personal Computers (PCs), Servers, and Ultra Small Form Factor (USFF) devices. The scheme is open to Indian-registered companies, classified as Global, Hybrid (Global/Domestic), or Domestic, that manufacture these products in India.
The scheme aims to foster self-reliance and position India as a global electronics manufacturing hub. It encourages incremental investment in plant, machinery, equipment, research and development (R&D), and transfer of technology (ToT) related to the target segment. A key focus is on deeper localization of components and sub-assemblies, increasing domestic value addition. The scheme also aims to generate substantial employment in the manufacturing sector.
Highlights
- Financial incentives up to 3.78% on incremental sales
- Incentive for 6 consecutive years
- Covers Laptops, Tablets, PCs, Servers, USFF devices
- Quarterly, half-yearly, or annual claim filing
- Open to Global and Domestic companies with defined revenue thresholds
- Localization requirement: PCBA and finished goods assembly from Year 1
Who can apply
To apply, your company must be registered in India and propose to manufacture goods covered under the target segment: Laptops, Tablets, All-in-One PCs, Servers, and USFF devices. You must meet threshold criteria for incremental investment and net incremental sales over the base year. Additionally, qualification is based on consolidated global manufacturing revenue for FY 2021-22:
- Global Companies: Consolidated global manufacturing revenue must exceed ₹5,000 crore for the target segment OR ₹10,000 crore for electronics hardware.
- Domestic Companies: Consolidated global manufacturing revenue must exceed ₹10 crore for the target segment OR ₹20 crore for electronics hardware.
There is also a localization requirement: you must perform Printed Circuit Board Assembly (PCBA) and finished goods assembly from the first year.
PLI Scheme 2.0 for IT Hardware – Up to 3.78% Incentive for Indian Manufacturers is open to startups at any stage. It is open to startups registered anywhere in India.
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Deadline & timing
PLI Scheme 2.0 for IT Hardware – Up to 3.78% Incentive for Indian Manufacturers 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.
What the funding covers
Successful applicants receive financial incentives on the net incremental sales of IT hardware manufactured in India, with rates varying by product and component. Incentives are available for 6 consecutive years within the scheme tenure. Rates start at 3% for assembly of laptops, tablets, PCs, USFF devices, and servers, gradually tapering to 0% by Year 6. Specialized components like PCBA, display panels, memory modules, SSDs, and cabinets/chassis/enclosures receive rates between 0.90% and 1.49%. High-value items such as SoC processors designed in India can attract incentives of 3.24% to 3.78%. Additional incentives are available for Advanced Packaging (ATMP) and integrated circuit (IC) manufacturing. Claims can be filed quarterly, half-yearly, or annually, ensuring regular cash flow. There is also an investment shortfall relief: if the shortfall is within 40% of the threshold, incentives are payable with a partial deduction, and withheld incentives are refunded once the investment target is met.
About the provider
PLI Scheme 2.0 for IT Hardware – Up to 3.78% Incentive for Indian Manufacturers 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.
How to apply
Applications are submitted on the official portal. Confirm the current deadline and document checklist there before you start.
Selection process
Applications are evaluated by the designated Project Management Agency (PMA). The PMA assesses your submitted details—investment, production plans, and financial information—against the scheme's eligibility and threshold criteria. It may request clarifications or additional documents to ensure compliance. Once approved, the PMA verifies annual claims from approved manufacturers, confirming that incremental sales and investment targets are met before approving incentive disbursement.
Documents you’ll need
Before you apply to PLI Scheme 2.0 for IT Hardware – Up to 3.78% Incentive for Indian Manufacturers, 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.
Frequently asked questions
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, SSDs, 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.
Is DPIIT or MSME registration required?
The source material does not specify any DPIIT or MSME registration requirement. The key eligibility criteria are being an Indian-registered company and meeting the revenue thresholds.
Does the scheme take equity?
No, the PLI scheme provides financial incentives in the form of subsidies, not equity. It is non-dilutive, meaning you do not give up ownership.
What documents are typically needed for application?
The source does not list specific documents. However, you will need to provide company details, investment plans, production plans, and financial information as part of the application form.
How do I apply for the scheme?
Applications are submitted online through the dedicated PLI Scheme 2.0 for IT Hardware portal. You register, fill the application form with details on investment and production, upload supporting documents, and submit. The Project Management Agency evaluates and may request clarifications.
What is the application deadline for PLI Scheme 2.0 for IT Hardware – Up to 3.78% Incentive for Indian Manufacturers?
PLI Scheme 2.0 for IT Hardware – Up to 3.78% Incentive for Indian Manufacturers runs on a rolling basis with no fixed deadline — applications are accepted on an ongoing basis. Check the official site to confirm the window is currently open.
Who offers PLI Scheme 2.0 for IT Hardware – Up to 3.78% Incentive for Indian Manufacturers?
PLI Scheme 2.0 for IT Hardware – Up to 3.78% Incentive for Indian Manufacturers is offered by Ministry of Electronics and Information Technology (MeitY), a government body. It is provided as non-dilutive funding.
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