PLI Scheme 2.0 for IT Hardware 2026: Financial Incentives, Eligibility & Application Process

At a glance

About the scheme

Launched by the Ministry of Electronics and Information Technology (MeitY), the Production Linked Incentive (PLI) Scheme 2.0 for IT Hardware aims to turn India into a global electronics manufacturing hub. The initiative targets companies producing laptops, tablets, all-in-one personal computers, servers, and ultra small form factor devices. By compensating companies with financial incentives on net incremental sales over a base year, the scheme boosts domestic value addition, promotes supply chain localisation, encourages local research and development, and creates manufacturing jobs across the nation.

Benefits

• Financial incentives on net incremental sales of eligible IT hardware goods manufactured in India for 6 consecutive years.
• Coverage for target segment products including Laptops, Tablets, All-in-One Personal Computers (PCs), Servers, and Ultra Small Form Factor (USFF) devices.
• Assembly incentive rates scaling from 3% in Year 1 down to 0% in Year 6 for finished devices.
• Component-level incentives ranging over Year 1 to Year 6: PCBA (1.20% to 0.90%), Display Panel (1.49% to 1.12%), Memory Modules (0.95% to 0.71%), SSD (0.95% to 0.71%), and Cabinets/Chassis/Enclosures (1.49% to 1.12%).
• Special incentives for SoC Processors designed in India ranging from 3.24% to 2.43% (up to 3.78% to 2.84% for Servers), plus extra support for ATMP and IC manufacturing.
• Investment shortfall relief: if investment shortfall is 40% or less of the required threshold, the incentive is paid with a proportional deduction (X/2%), and the withheld amount is refunded without interest once the threshold is achieved in a later year.
• Flexible claim filing frequency: claims can be filed quarterly, half-yearly, or annually within 9 months from the end of the relevant financial year.

Who can apply (eligibility)

• Applicant must be an enterprise registered in India.
• Must propose to manufacture goods covered under the Target Segment (Laptops, Tablets, All-in-One PCs, Servers, USFF).
• Must meet the prescribed threshold criteria for Incremental Investment in plant, machinery, equipment, R&D, and Transfer of Technology.
• Must meet the required threshold for Net Incremental Sales of target segment goods over the base year.
• Must meet qualification criteria based on Consolidated Global Manufacturing Revenue for Financial Year 2021-22.
• For Global Companies: Consolidated Global Manufacturing Revenue for FY 2021-22 must exceed ₹5,000 crore (₹50,00,00,000/-) for the target segment or ₹10,000 crore (₹100,00,00,000/-) for electronics hardware.
• For Domestic Companies: Consolidated Global Manufacturing Revenue for FY 2021-22 must exceed ₹10 crore (₹1,00,00,000/-) for the target segment or ₹20 crore (₹2,00,00,000/-) for electronics hardware.
• Must localise at least Printed Circuit Board Assembly (PCBA) and assembly of finished goods starting from the first year, adding at least one component or sub-assembly in each subsequent year.

Who cannot apply

• Expenditure on land and buildings does not count toward eligible investment thresholds.
• Contract manufacturers cannot claim incentives on products if they have already claimed incentives for the same goods under any other PLI scheme.

Documents required

• Application Form as prescribed in Annexure 3
• Proof of electronic payment of Application Fee of ₹1,00,000/-
• Self-certified Statement of Consolidated Global Revenue for the relevant financial year (Annexure 4)
• Localisation Plan and Annual Incentive Projection
• Integrity Compliance Certificate (Annexure 10)
• Independent Auditor’s Certificate confirming investment and sales details
• Chartered Engineer Certificate verifying plant and machinery physically
• Certificate from Managing Director or CEO regarding regulatory clearances
• Board Resolution accepting scheme terms and conditions
• Declaration from Component Supplier (if localising through a supply chain partner)
• Undertaking from the Contract Manufacturer confirming no double incentive claims

How to apply

1. 1Open the official PLI IT Hardware portal at pliithw.com.
2. 2Register your enterprise on the portal using corporate and company details.
3. 3Access the official application form inside the portal dashboard.
4. 4Fill in all operational sections including investment thresholds, production targets, and financial details.
5. 5Upload all mandatory certificates, resolutions, and auditor reports as specified.
6. 6Pay the ₹1,00,000 application fee electronically and submit the form online.
7. 7Track evaluation by the Project Management Agency (PMA) and submit any requested clarifications.
8. 8Receive the formal approval letter issued by the competent authority.
9. 9Start domestic manufacturing operations and submit periodic incentive claims online within 9 months of financial year close.

Frequently asked questions