PLI 2.0 Scheme for IT Hardware
Purpose and Nature
- Purpose: To boost domestic manufacturing of IT hardware and attract large-scale investments in the entire value chain.
- Type: It is a Central Sector Scheme, meaning it is fully funded by the Government of India.
- Tenure: Incentive period is 6 years.
- Project Management Agency: Industrial Finance Corporation of India (IFCI).
Objective
➡️ To promote domestic manufacturing by offering financial incentives on sales of eligible IT hardware products, thereby making India a hub for electronics and semiconductor manufacturing.
Background
- The first version, PLI 1.0, was launched in 2021.
- PLI 2.0 came with double the outlay, higher incentives, and longer tenure.
- It provides greater flexibility to applicants and a longer duration to build and stabilize supply chains within India.
Categories of Applicants
The scheme is open to three categories of companies:
- Global companies – foreign players willing to set up manufacturing in India.
- Hybrid companies – joint ventures or collaborations between global and domestic firms.
- Domestic companies – Indian manufacturers.
This categorization ensures participation from both Indian and international players.
Target Segments
The scheme covers manufacturing of the following IT hardware products:
- Laptops and Tablets
- All-in-One PCs
- Servers
- Ultra-Small Form Factor (USFF) devices
- Semiconductor design, IC manufacturing, and packaging
This list reflects India’s ambition to build a comprehensive electronics ecosystem.
Eligible Products and Incentives
- Eligible Products: Only those manufactured in India under the defined target segments.
- Incentives: Around 5% on net incremental sales (over the base year).
- Example: If a company sells ₹1,000 crore worth of laptops more than last year, it gets ~₹50 crore as incentive.
Monitoring and Oversight
- The scheme is monitored by an Empowered Group of Secretaries (EGoS) chaired by the Cabinet Secretary.
- This ensures top-level governance and accountability.
Significance
- Reduces dependence on imports of IT hardware.
- Encourages supply chain localization within India.
- Attracts global tech giants to set up manufacturing bases in India.
- Promotes India’s ambition of becoming a global hub for electronics and semiconductor manufacturing.
Summary for UPSC Quick Recall
- Launched: 2023 (PLI 2.0, after PLI 1.0 in 2021)
- Type: Central Sector Scheme
- Tenure: 6 years
- Nodal Agency: IFCI
- Target Products: Laptops, Tablets, PCs, Servers, USFF, Semiconductors
- Incentives: ~5% on incremental sales
- Applicants: Global, Hybrid, Domestic companies
- Monitoring: Empowered Group of Secretaries (Cabinet Secretary)
✨ In short, PLI 2.0 for IT Hardware = Financial incentives + Longer tenure + Wider coverage, with the ultimate aim of making India self-reliant and globally competitive in electronics manufacturing.