India to Revamp IT Hardware PLI Scheme in Late FY27
India's Ministry of Electronics and Information Technology (MeitY) is preparing to revamp the Rs 17,000 crore Production Linked Incentive (PLI) scheme for IT hardware by late fiscal year 2026-27. Officials indicate that significant revisions will follow a comprehensive assessment of the scheme's effectiveness after major incentive disbursements begin. Currently, payouts are minimal at Rs 82 crore, but they are projected to surge in the second half of FY27 as claims clear. Most of the 27 approved participants, including global giants like Dell, HP, Foxconn, Lenovo, and Asus, selected FY25 as their base production year to facilitate supply chain transitions from China and Southeast Asia. The proposed updates aim to expand coverage to include artificial intelligence (AI) servers and related hardware products. This strategic modification seeks to strengthen India's domestic manufacturing ecosystem for laptops, tablets, PCs, and servers. The government intends to evaluate progress before implementing changes, ensuring the scheme effectively boosts local production and integrates emerging technologies like AI into the national hardware manufacturing framework.
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