Production Linked Incentive (PLI) Scheme
The PLI scheme is India's flagship industrial policy instrument, introduced in 2020-21 to boost domestic manufacturing, reduce import dependence, and enhance export competitiveness. It offers financial incentives to eligible manufacturers as a percentage of incremental sales over a base year, conditional on meeting investment and production thresholds.
- Sectors covered: 14 key sectors, including mobile phones and electronics, pharmaceuticals, medical devices, automobiles and auto components, Advanced Chemistry Cell (ACC) batteries, specialty steel, textiles, food processing, white goods, solar PV modules, and telecom equipment.
- Total outlay: Approximately Rs. 1.97 lakh crore (over US$26 billion) across all 14 sectors.
- Investment mobilized till November 2023: Over Rs. 1.03 lakh crore.
- The scheme differs from direct export subsidies (which are prohibited under WTO) — incentives are linked to production growth, not export performance.
- Domestic Value Addition (DVA) requirements apply in some schemes (auto, ACC batteries) to encourage local supply chain development.
● Tracked since February 20, 2026 · last seen August 22, 2026 · updates as the daily brief publishes
22 Jul '26
Cabinet clears ₹62,500 cr MPMS scheme: 'Focus now on components, design, research'
Economics
21 Jul '26
PLI schemes attract ₹2.4 lakh crore investments, create over 14 lakh jobs till March 2026
Economics
17 May '26
North America, NE Asia, Latin America account for over 35 pc of India's exports in FY26
Economics
15 Apr '26
Government likely to roll out mobile PLI 2.0 with outlay of over $5 billion by May
Economics
Plus 1 earlier mentions since February 20, 2026.
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