The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi has given its approval to introduce the Production-Linked Incentive (PLI) Scheme 2.0 for IT Hardware for Enhancing India’s Manufacturing Capabilities and Enhancing Exports – Atmanirbhar Bharat on 17.05.2023
Production Linked Incentive Scheme 2.0 for IT Hardware notified vide Gazette Notification No. CG-DL-E-30052023-246165 dated May 29, 2023 offers a production linked incentive to boost domestic manufacturing and attract large investments in the value chain.
The PLI Scheme 2.0 for IT Hardware is expected to result in broadening and deepening of the manufacturing ecosystem by encouraging the localisation of components and sub-assemblies and allowing for a longer duration to develop the supply chain within the country. Additionally, the scheme provides increased flexibility and options for applicants, and is tied to incremental sales and investment thresholds to further incentivise growth. Furthermore, semiconductor design, IC manufacturing, and packaging are also included as incentivised components of the PLI Scheme 2.0 for IT Hardware.
The Scheme shall extend an average incentive of around 5% on net incremental sales (over base year) of goods manufactured in India and covered under the target segment, to eligible companies, for a period of six (6) years. The Target Segment under PLI shall include (i) Laptops (ii) Tablets (iii) All-in-One PCs (iv) Servers and Ultra Small Form Factor (USFF).
Support under the Scheme shall be provided to companies based on the eligibility criteria laid down, for manufacturing of goods (covered under the target segment) in India.
Application date for accepting applications under the PLI scheme - PLI 2.0 for IT Hardware extended till 30.08.2023
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