← Concept Library · Economy
Economy GS 3 In the news 5 times

Production-Linked Incentive (PLI) Scheme

The PLI scheme, launched in 2020-21, provides financial incentives to manufacturers in 14 key sectors (including electronics, pharmaceuticals, automobiles, textiles, food processing) based on incremental production over a base year. It is designed to attract both domestic and foreign manufacturers, enhance scale, and improve export competitiveness, addressing the cost disadvantage that Indian manufacturers face relative to regional peers.

Key details
  • PLI outlay across 14 sectors: approximately ₹1.97 lakh crore.
  • Electronics is among the best-performing PLI sectors, with Apple's supply chain partners (Foxconn, Tata Electronics) expanding India production.
  • Textiles PLI (Man-made fibres and technical textiles) aims to create 7.5 lakh jobs.
  • Critics note that PLI primarily benefits capital-intensive production and may not generate as many jobs per rupee invested as hoped.
In the news

Tracked since February 15, 2026 · last seen May 24, 2026 · updates as the daily brief publishes

Related concepts
See it in today’s brief. Daily current affairs with every static concept explained in place.
Read the daily brief