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Production Linked Incentive schemes in India

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Production Linked Incentive, or PLI, scheme of the Government of India is a form of performance-linked incentive to give companies incentives on incremental sales from products manufactured in domestic units. It is aimed at boosting the manufacturing sector and to reduce imports.[1] Objective of these schemes entail Make in India, incentivising foreign manufacturers to start production in India and incentivise domestic manufacturers to expand their production and exports.[1] The Government of India (GoI) has introduced Rs 1.97 lakh cr (US$28 b) PLI schemes for 13 sectors.[2] For example, one of these sectors is the Automotive industry in India, for which GoI introduced 3 schemes, a Rs. 26,000 cr (US$3.61 b) scheme for production of electric vehicles and hydrogen fuel vehicles (PEVHV), the Rs 18,000 crore (US$2.5 b) "Advanced Chemistry Cell" (ACC) scheme for new generation advance storage technologies for the electric vehicles, and Rs 10,000 crore (US$1.4 b) "Faster Adaption of Manufacturing of Electric Vehicles" (FAME) scheme to go green by expediting production of more electric vehicles and replacement of other types of existing vehicles with the greener vehicles.[3] The PLI scheme to boost automotive sector to encourage the production of electric vehicles and hydrogen fuel vehicles will also generate 750,000 direct jobs in auto sector.[2] These schemes will reduce pollution, climate change, carbon footprint, reduce oil and fuel import bill through domestic alternative substitution, boost job creation and economy.[3] Society of Indian Automobile Manufacturers welcomed this as it will enhance the competitiveness and boost growth.[2]

By March 2025, the schemes had attracted ₹1.76 lakh crore (≈ USD 21 billion) in committed investment and created over 12 lakh (1.2 million) jobs, with government disbursals crossing ₹21,500 crore (≈ USD 2.6 billion).[4][5] Key sectors such as electronics and components, white goods, and automobile & auto-components have driven much of this expansion. Electronics production rose from ₹2.13 lakh crore (≈ USD 26 billion) in FY 2021 to ₹5.25 lakh crore (≈ USD 63 billion) in FY 2025 under PLI support. The white-goods scheme (₹6,238 crore ≈ USD 750 million) secured more than ₹6,600 crore (≈ USD 800 million) in investment commitments and aims to raise domestic value-addition in ACs and LEDs.[6] The auto-components PLI attracted about ₹29,500 crore (≈ USD 3.5 billion) and generated nearly 45,000 jobs by early 2025.[7][8]

In March 2025, the Indian Cabinet approved a ₹22,919 crore (≈ USD 2.75 billion) Production-Linked Incentive (PLI) scheme for non-semiconductor electronics components, marking a major push to build a domestic component ecosystem. The scheme targets critical items such as multi-layer PCBs, display and camera modules, lithium-ion cells, resistors, capacitors, and inductors. Over its six-year tenure, it is expected to attract ₹59,350 crore (≈ USD 7.1 billion) in investment, generate ₹4.56 lakh crore (≈ USD 54 billion) in production, and create 91,600 direct jobs with additional indirect employment.[9][10] By October 2025, electronics-parts makers had committed more than ₹1.15 lakh crore (≈ USD 13.6 billion) across 249 applications, reflecting strong industry response.[11] The government also approved a first batch of seven component-manufacturing projects worth ₹5,500+ crore (≈ USD 660 million), covering multi-layer PCB and camera-module plants and expected to create over 5,100 direct jobs.[12]

List of industries

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The government has introduced the scheme for several industries which include:[13]

  1. Auto components
  2. Automobile
  3. Aviation
  4. Chemicals
  5. Electronic systems
  6. Food processing
  7. Medical devices
  8. Metals & mining
  9. Pharmaceuticals
  10. Renewable energy
  11. Telecom
  12. Textiles & apparel
  13. White goods
  14. Drones

See also

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References

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  1. ^ a b "Explained: What is PLI scheme, and which sectors will be under it?". Indian Express. 8 November 2020.
  2. ^ a b c Cabinet Clears ₹ 26,000 Crore Scheme For Auto Sector To Boost Production, NDTV, 15 September 2021.
  3. ^ a b India doesn’t need speed breakers. Modi govt right to help automobile, telecom, The Print, 17 September 2021.
  4. ^ Suneja, Kirtika (25 June 2025). "PLI schemes attract Rs 1.76 lakh cr investment, create 12 lakh jobs: Govt". The Economic Times. ISSN 0013-0389. Retrieved 19 November 2025.
  5. ^ Barik, Soumyarendra (5 December 2024). "In 3-year PLI push, phones, pharma, food dominate new jobs creation". The Indian Express. Retrieved 19 November 2025.
  6. ^ "Govt notifies PLI scheme of Rs 6,238 crore for white goods". The Financial Express. 5 June 2021. Retrieved 19 November 2025.
  7. ^ www.ETAuto.com. "PLI-Auto scheme draws ₹29,576 cr investment, creates nearly 45,000 jobs: Kumaraswamy". ETAuto.com. Retrieved 19 November 2025.
  8. ^ Service, Statesman News (27 March 2025). "PLI scheme auto sector attracts Rs 25,219 cr investment, 38,186 jobs: Govt". The Statesman. Retrieved 19 November 2025.
  9. ^ "Cabinet gives nod to electronics component PLI scheme worth Rs 22,919 cr". The Economic Times. 28 March 2025. ISSN 0013-0389. Retrieved 19 November 2025.
  10. ^ www.ETTelecom.com. "India approves Rs 22,919 crore PLI scheme to boost electronics components manufacturing". ETTelecom.com. Retrieved 19 November 2025.
  11. ^ Barik, Soumyarendra (2 October 2025). "Centre gets Rs 1.15 lakh crore in investment commitment from electronics parts makers". The Indian Express. Retrieved 19 November 2025.
  12. ^ "India clears ₹5,532 crore worth of projects under ECMS to boost electronics component manufacturing - BusinessToday". Business Today. 27 October 2025. Retrieved 19 November 2025.
  13. ^ 'Production Linked Incentive (PLI) Schemes in India', Government of India
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