Production Linked Incentive (PLI) Scheme

About the Scheme

The Production Linked Incentive (PLI) scheme was announced in 2020 to boost domestic manufacturing and exports by providing incentives on incremental sales from products manufactured in India. It covers 14 sectors: Electronic/Technology Products, IT Hardware, Pharmaceuticals, Telecom & Networking Products, Food Products, White Goods (ACs and LED Lights), Auto & Auto Components, Specialty Steel, Advanced Chemistry Cell (ACC) Battery, Textiles, Drones, Medical Devices, Semiconductor & Display, and Railways. Total outlay exceeds ₹2.5 lakh crore.

Benefits

• 4-6% incentive on incremental sales
• Sector-specific incentive rates
• Duration of 5 years (varies by sector)
• Promotes economies of scale and exports
• Supports MSME integration in global value chains

Eligibility Criteria

• 1Manufacturing units in 14 identified sectors
• 2Minimum investment and production thresholds (sector-specific)
• 3Must achieve incremental sales over base year
• 4Compliance with sector-specific guidelines

Documents Required

Frequently Asked Questions