India’s Ministry of Electronics and Information Technology (MeitY) is preparing to revisit the Rs 17,000 crore IT hardware production-linked incentive (PLI) scheme later in FY27, after initial disbursements and rising component manufacturing. Officials say AI servers and other AI-linked hardware are likely to be added to coverage as part of the next modification window. Incentive payouts are expected to surge in the second half of FY27, currently far below the pace projected as many firms’ claims begin clearing this year.
Dixon Technologies’ quarterly profit fell 36% even as revenue grew, driven by soft consumer demand, higher component costs and the withdrawal of PLI benefits. Margins came under pressure, but the company is looking ahead with plans to scale smartphone manufacturing, telecom equipment, exports and IT hardware, betting on strong growth momentum into FY27.
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The government is reportedly considering a Rs 7,500 crore outlay under the PLI scheme for IT hardware manufacturing, with very different eligibility thresholds. Foreign companies seeking incentives may need to invest about Rs 500 crore over four years, while domestic firms could qualify with around Rs 20 crore over five years, according to a source.
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