IT hardware PLI: Focus shifts from exports to import substitution

The scheme will now help in reducing India's over-dependence on imports (80 per cent of laptops are imported), especially from China which include laptops, tablets and servers

It started out as a Production Linked Incentive (PLI) scheme to make India an export hub. But after many a twist and turns, the latest 2.0 PLI for IT hardware, for which the 40 eligible candidates have applied till its deadline, is now focused on ‘import substitution’.

The scheme will help in reducing India’s over-dependence on imports (80 per cent of laptops are imported), especially from China which include laptops, tablets and servers. 

They will be assembled in India. Exports will take the back seat but the PLI will help in incentivising the local supply chain to support the products.