Industrial Subsidies India: PLI 2.0 for IT Hardware Manufacturers

The Government of India has significantly expanded its support for the electronics manufacturing ecosystem through the Production Linked Incentive (PLI) Scheme 2.0 for IT Hardware. This initiative represents a core pillar of Industrial Subsidies in India, aimed at making the country a global hub for the production of laptops, tablets, all-in-one PCs, servers, and ultra-small form factor devices. Under this scheme, companies can claim financial incentives ranging from 3% to 5% on the incremental sales of goods manufactured in India. The scheme is designed to compensate for the disability costs associated with domestic manufacturing and to encourage a robust component ecosystem. Unlike previous versions, PLI 2.0 offers increased flexibility in the investment window and higher incentives for utilizing domestically sourced components. ## What this means for manufacturers For Indian SMEs and large-scale manufacturers, this scheme provides a strategic pathway to scale operations. As per the Ministry of Electronics and Information Technology (MeitY) guidelines, applicants are categorized based on their global or domestic investment profiles. To qualify for the full lifecycle of benefits, companies must meet specific thresholds for incremental investment and local value addition (LVA). Navigating these industrial subsidies requires precise documentation of production capacities and audit-ready records of incremental sales. Exporters should prioritize the 'Design-led' manufacturing criteria to unlock higher tier benefits and ensure long-term sustainability in the global supply chain.