IT hardware cos struggle to meet FY25 PLI target on lack of orders
Under the scheme that began in April, the majority of the 27 companies enlisted as beneficiaries are yet to even start production. And those who have started, are producing volumes too small to have any significant revenue impact to meet the incremental targets. Some are yet to make even initial investments under the scheme.
In the first year of the scheme, only a handful of companies — VVDN Technologies, Flextronics and Bhagwati (Micromax) — are on track to meet targets for the first year. Dixon, which met the target under the previous PLI scheme, is set to open a large facility in Chennai in December and will be missing the targets in its second year. For the majority, FY2026 is expected to be the first year of production, industry executives said. They added that it is a lack of orders that is keeping back most manufacturers from expanding capacity and starting production.
The IT Hardware PLI scheme was revised with an outlay of ₹17,000 crore and notified in May 2023 with a total of 27 companies approved under the scheme. The companies include large multinationals like Dell, HP, Flextronics, as well as local manufacturers like Dixon Technologies, VVDN and Sahasra Electronic Solutions.
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