Production Linked Incentive (PLI) Scheme

Scheme Introduction: A Brief Overview

India's manufacturing sector covers a wide range of industries, but building large-scale production capacity requires sustained investment, technology, skilled employment and strong domestic supply chains. To support this transition, the Government of India introduced the Production Linked Incentive (PLI) Scheme in 2020. Rather than providing a general benefit to all businesses, the scheme links financial incentives to the performance of eligible manufacturing companies. The PLI framework now covers 14 key sectors, and the latest Government data shows that these schemes had attracted more than ₹2.40 lakh crore in actual investment and generated more than 14.15 lakh direct and indirect employment opportunities as of 31 March 2026. Cumulative exports reported under the PLI schemes reached ₹15.2 lakh crore in FY 2025-26.

The PLI Scheme aims to boost manufacturing in India by encouraging new investment, higher production, exports and greater domestic value addition. It covers 14 sectors, including electronics, pharmaceuticals, automobiles, solar PV, textiles, telecom and food processing.

Each sector has its own eligible products, investment requirements, performance targets and incentive rates. Therefore, the rules and benefits are different for each PLI scheme.

The Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry acts as the nodal department for the overall coordination and monitoring of the PLI schemes. However, the individual sector-specific schemes are implemented by their respective Administrative Ministries and Departments. The Government's latest update also confirms that the PLI framework has an approved financial outlay of ₹1.91 lakh crore. For the latest coordination-related information and official updates, readers can visit the official DPIIT website.

The PLI Scheme is meant for eligible manufacturing companies and is not a general subsidy or loan for individuals. To receive the benefit, a company must meet the conditions set for its particular sector. These may include minimum investment, sales, production, domestic value addition, turnover or other performance requirements.

The incentive is linked to the company's actual manufacturing performance. In several PLI schemes, the incentive is calculated using incremental sales over a specified base year. However, the incentive rate, calculation method and performance conditions are different for each sector. Companies should therefore check the guidelines for their specific PLI scheme.

There is no single application form or common portal for all 14 PLI sectors. Companies must identify the relevant sector, check whether applications are open and use the online portal notified by the concerned Ministry or Department. After approval, the company must continue to meet the applicable conditions and submit its incentive claim through the prescribed process.

Project Management Agencies may be involved in reviewing applications, checking documents and examining incentive claims, depending on the sector. For any questions about eligibility, application or claims, companies should contact the concerned implementing Ministry, Department or Project Management Agency.

Readers interested in the electric-vehicle ecosystem can also explore the PM E-Drive Scheme on GovtSchemes.in. It is relevant alongside PLI-Auto and PLI-ACC because it supports electric-vehicle adoption, charging infrastructure and the broader EV manufacturing ecosystem.

Scheme Benefits

The PLI Scheme supports companies that increase production and meet the performance conditions set for their sector. The main benefits include:

• Eligible companies can receive financial incentives for meeting the production, sales or other performance targets prescribed under their sector.
• It supports large-scale investment in manufacturing. As of 31 March 2026, actual investment under the PLI framework reached ₹2,40,138 crore.
• It encourages new investment and expansion in key sectors such as electronics, pharmaceuticals, automobiles, solar PV and textiles.
• It helps companies increase manufacturing capacity, achieve economies of scale and improve their competitiveness.
• It promotes greater domestic value addition by encouraging the production of components, inputs and other products within India.
• It supports exports by helping Indian manufacturers increase production and compete in international markets. Cumulative exports under the PLI framework reached ₹15.2 lakh crore by FY 2025-26.
• It supports employment across manufacturing and related industries. The Government reported more than 14.15 lakh direct and indirect employment opportunities as of 31 March 2026.

The actual benefit depends on the relevant sector-specific PLI scheme because incentive rates, eligible products and performance conditions differ across sectors.

How Does the Production Linked Incentive (PLI) Scheme Work?

The PLI Scheme works on a simple principle: companies receive incentives after achieving the manufacturing and performance targets prescribed for their sector. The process can be understood in five simple steps:

Where does the base year come in? In schemes that calculate incentives using incremental sales, the company's eligible sales are compared with the specified base year. FY 2019-20 is used as the base year in several PLI schemes, but the base year and calculation method are not the same for every sector.

Eligibility Requirements

The PLI Scheme is meant for companies that manufacture eligible products covered under one of the 14 PLI sectors. Since every sector has different rules, the exact eligibility requirements may vary.

• The applicant must be an eligible company or business entity under the concerned PLI scheme.
• The company must manufacture the products covered under the relevant PLI sector in India.
• The company must meet the minimum investment requirement applicable to its sector and category.
• It must achieve the sales, production or other performance targets specified under the scheme.
• Some sectors may also require minimum domestic value addition, turnover, net worth or other financial conditions.
• The company must apply within the application period notified for the concerned PLI sector.
• It must provide the required company, financial, investment, production and sales documents for verification.
• Eligible Indian companies and foreign-owned companies can participate where allowed under the sector-specific rules.
• MSMEs can participate in PLI schemes where the concerned scheme provides eligibility for them.
• Individuals cannot apply because the PLI Scheme is designed for eligible manufacturing companies and business entities.
• The company must continue to meet the applicable conditions to receive incentives against verified claims.

Since the rules are different for each sector, meeting the general requirements does not automatically make a company eligible. Always check the latest guidelines for the relevant PLI scheme before applying.

List of 14 Production Linked Incentive (PLI) Sectors

The PLI framework covers 14 strategic manufacturing sectors. Each sector is administered by the Ministry or Department responsible for that industry and has its own products, eligibility conditions, incentive structure and implementation process.

Required Documents

Companies applying for a Production Linked Incentive (PLI) scheme need to submit documents that help the concerned Ministry verify their business details, investment, manufacturing activity and financial performance. The exact list can differ between the 14 sector-specific schemes, but applicants may generally need the following documents:

• Certificate of incorporation or registration of the company.
• Company PAN and other applicable registration details.
• GST registration certificate and relevant tax details.
• Details of the company's directors, authorised signatory and ownership structure.
• Audited financial statements and relevant financial records for the prescribed years.
• Details of annual turnover, sales and other financial information required under the concerned scheme.
• Details of the proposed or completed investment, including eligible plant, machinery and other assets.
• Details of the manufacturing facility and the eligible products proposed to be manufactured in India.
• Documents supporting investment and expenditure, such as invoices, purchase records and other prescribed evidence.
• Production and sales records required to establish achievement of the applicable performance targets.
• Domestic value addition or localisation-related documents, where required under the relevant PLI scheme.
• Bank account details and other documents required for receiving the approved incentive.
• Any additional declarations, certificates, undertakings or documents specified in the sector-specific Production Linked Incentive (PLI) guidelines.

Applicants should check the latest guidelines and application instructions of their respective PLI sector before submitting documents, as the required documents and verification process may vary from one scheme to another.

Steps to Apply

The PLI Scheme has a sector-specific application process. Before applying, a company should first identify the relevant sector and check whether applications are open. The actual application is then completed through the portal notified for that sector.

Before Applying

• Identify the PLI sector that covers your product.
• Read the latest guidelines issued by the concerned Ministry or Department.
• Check whether your company and product meet the basic eligibility requirements.
• Check the latest notification to confirm that the application window is open.
• Keep the required company, financial and product-related information ready.

During the Online Application

• Open the official PLI application portal for your sector.
• Register your company on the portal and create the required login credentials.
• Fill in the requested company, product and other details.
• Upload the documents specified under the relevant PLI guidelines.
• Pay the application fee, if applicable.
• Review the information and submit the application.
• Save the application number or acknowledgement for future reference.

For example, companies applying under the White Goods PLI can use the official PLI White Goods portal for registration and application-related services.

After Submitting the Application

The concerned Ministry, Department or designated Project Management Agency reviews the application according to the applicable scheme rules. If additional information or documents are required, the applicant may need to provide them through the prescribed process.

Production Linked Incentive (PLI) Scheme vs Other Manufacturing Schemes

The PLI Scheme is often discussed alongside newer manufacturing and technology programmes, but these are separate Government schemes with different objectives and support mechanisms.

Relevant Links

• DPIIT Official Website
• Latest Production Linked Incentive (PLI) Scheme Update
• Production Linked Incentive (PLI) White Goods Portal
• MeitY – Production Linked Incentive (PLI) for Large Scale Electronics Manufacturing
• IT Hardware Production Linked Incentive (PLI) 2.0 Guidelines
• Telecom Production Linked Incentive (PLI) Guidelines
• MoFPI – Food Processing PLI Scheme
• MHI – Production Linked Incentive (PLI) Auto Scheme
• MHI – ACC Battery PLI Scheme
• MNRE – Solar PV PLI Scheme
• Ministry of Steel – Specialty Steel Production Linked Incentive (PLI)
• Ministry of Textiles – Textile Production Linked Incentive (PLI) Portal
• Drone PLI Guidelines

Contact Information

Since PLI consists of 14 sector-specific schemes, there is no single helpline that handles every PLI application or incentive claim. For general coordination-related information, applicants can contact DPIIT. For an application, eligibility issue or incentive claim, the concerned implementing Ministry or its designated Project Management Agency should be contacted.

Department for Promotion of Industry and Internal Trade (DPIIT)

• Phone: 011 23062947
• Other Departments Contact Details
• Address: Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry, Udyog Bhawan, New Delhi – 110011