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Production Linked Incentive Scheme 2.0

Focus: GS II: Government Policies and Interventions

Why in News?

Recently, the Operational Guidelines of Production Linked Incentive Scheme 2.0 for IT Hardware has been finalized.

Production Linked Incentive Scheme 2.0

  • The scheme aims to promote domestic manufacturing and attract investments in the value chain.

Target Segments:

  • The PLI 2.0 Scheme covers Laptops, Tablets, All-in-One PCs, Servers, and Ultra Small Form Factor.


  • Eligible companies, both global and domestic, will receive support for manufacturing goods in India within the specified target segments.
  • Applicants will be classified as either Global, Hybrid (Global/Domestic), or Domestic based on their company’s origin.
  • Applicants will be ranked based on eligibility criteria outlined in the scheme guidelines.
  • Selection of applicants in each category will depend on their ranking and overall PLI projection, subject to budget availability.

Tenure and Base Year:

  • Incentives provided under the PLI 2.0 Scheme will be applicable for a period of 6 years.
  • The base year for calculating net incremental sales of manufactured goods is the financial year 2022-23.

Incentives Payout:

  • Incentives granted to companies will be based on the net incremental sales of manufactured goods compared to the base year.
  • Maximum incentive amounts are capped at INR 45 billion for global companies, INR 22.50 billion for hybrid (global/domestic) companies, and INR 5 billion for domestic companies.

December 2023