MeitY to revamp IT hardware PLI later this year

The ₹17,000 crore production linked incentive (PLI) scheme for information technology (IT) hardware may be modified in late FY27 (2026-27), after major disbursements kick off and component manufacturing rises, officials told ET. Artificial intelligence (AI) servers and other AI-linked hardware products are slated to be extended coverage under the scheme then, they said.

“The incentive payout under the IT Hardware PLI 2.0 is expected to significantly rise in the second half of FY27, from just ₹82 crore so far. Claims will rise this year as 80% of the participants had chosen FY25 as the first year of production, and their claims will begin clearing.