Why PLI scheme in IT hardware sector hasn't taken off despite laptop demand

Imports shoot up as local production remains way short of expectations

The government’s Aatmanirbhar plan for IT hardware through its Production Linked Incentive (PLI) scheme — intended to give a big push to local production and reduce imports — has hit a logjam.

On the one hand, demand for laptops and tablets have hit the roof as companies, especially in the IT sector, and consumers continue to work from home. Lack of local production is driving imports to new levels.

Yet, only four of the 14 eligible players for the PLI scheme in IT hardware in the first year of operations have succeeded in meeting their production targets and will receive