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Last month, 40 proposals worth Rs. 5,000 crore were received by the ministry of electronics and IT under the IT Hardware Production Linked Incentive (PLI) 2.0 scheme, although fixed benefit limits mean not all offers will be eligible for the federal monetary support.

India is expected to approve investment proposals worth ₹4,000 crore under the revised IT hardware Production Linked Incentive (PLI) scheme. Last month, the ministry of electronics and IT received 40 proposals amounting to ₹5,000 crore, but not all will be approved due to budget constraints.

"The government wants that PLI for IT hardware 2.0 should succeed and since the majority of the companies will commence manufacturing under the scheme from April 1 next year, there will be a gap in supplies, which can be met only through imports," said an executive who participated in the meeting.

Zetwerk, which became a unicorn in 2021, is looking to invest more than Rs 1,000 crore into its consumer electronics business over the next three years, the company’s cofounder, Rahul Sharma, told ET.

The meeting discussed proposed changes, like linking the import of IT hardware to the local manufacturing of a company value and its export value of electronic items, according to sources.

The Director General of Foreign Trade (DGFT) put the import of IT hardware, including laptops, PCs and servers, under the restricted category last month, calling for a licence. The notification, passed on August 3, was amended a day later, deferring implementation to November 1, giving the industry three months to recalibrate. The order, however, has led to fears of supply disruptions and price increases once the restrictions kick in.

IT Hardware: August imports exceeded 1.2 million units, up from 800,000 in July, due to increasing orders from enterprise customers as well as original equipment makers (OEMs) that want to ensure adequate stocks during the festive season and for corporate requirements, an expert said. An industry grouping pegged the import spike at 20-30%.

India Business News: Apple's approach to manufacturing differs from the conventional setup, as it collaborates with global electronic contract manufacturers rather than es

The revised production-linked incentive (PLI) scheme for IT hardware has received a positive response from 38 companies, including global giants HP, Dell, Lenovo, and Foxconn, as well as local manufacturer Dixon Technologies. These companies have proposed investments of over ₹4,000 crore to produce goods worth ₹3.35 lakh crore over the next six years.

“Applicants will be shortlisted as per scheme guidelines within the approved outlay of Rs. 17000 crore,” a government official said Thursday, marking the final tally after the window for fresh applications for the scheme closed Wednesday midnight.