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Production Linked Incentive Scheme (P… — Govt Scheme for UPSC | Vaidra
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Production Linked Incentive Scheme (PLI)

Various Ministries (e.g., Electronics & IT, Heavy Industries, Pharmaceuticals, Food Processing Industries, etc.)activefinancialLaunched: 2020-03-31

About the Scheme

PLI Scheme incentivises domestic manufacturing across 14 sectors. By Sep 2025: ₹2 lakh crore actual investment realized; 12.6 lakh+ jobs; ₹18.7 lakh crore production; ₹7.5 lakh crore exports; ₹28,748 crore incentives disbursed. India is world's 2nd largest mobile phone manufacturer. Total outlay: ₹1.97 lakh crore.

Target Beneficiaries: 14 sectors; 1,000+ companies; 12.6 lakh direct + indirect jobs (Sep 2025)

Implementing Agency: Concerned Ministries/Departments for each of the 14 sectors (e.g., Ministry of Electronics & IT for large scale electronics manufacturing, NITI Aayog for overall coordination).

Official Website →

✦Key Features

  • 14 sectors: Mobile, Electronics, Pharma, Medical Devices, Auto, ACC Battery, Textile, Food, Telecom, White Goods, Steel, Solar PV, Speciality Steel, Drones
  • ₹2 lakh crore actual investment realized (Sep 2025); ₹18.7 lakh crore production; ₹7.5 lakh crore exports
  • 12.6 lakh+ direct and indirect jobs; ₹28,748 crore government incentives disbursed
  • India became world's 2nd largest mobile phone manufacturer — Apple, Samsung, Foxconn manufacturing in India
  • PLI for Solar Panels: 40 GW capacity being set up — reducing import dependence
  • PLI for Bulk Drugs (APIs): 35 products; reducing dependence on China for pharmaceuticals
  • PLI for IT Hardware (laptops, tablets) from 2023 — reducing import dependence

✓Eligibility Criteria

  • Companies registered in India with a manufacturing presence.
  • Meeting sector-specific minimum thresholds for incremental investment and sales.
  • Adherence to prescribed product and quality standards.
  • Commitment to local value addition as per sector guidelines.
  • Companies must be engaged in manufacturing eligible products within the identified sectors.

★Benefits

  • Financial incentives leading to increased profitability and competitiveness.
  • Enhanced domestic manufacturing capabilities and reduced reliance on imports.
  • Significant job creation across various skill levels.
  • Technological upgradation and promotion of R&D within the country.
  • Increased exports and integration into global supply chains.

▶Application Process

  • Submission of online application through the designated portal of the respective Ministry/Department.
  • Scrutiny and evaluation of applications by an Empowered Committee.
  • Approval and signing of a Memorandum of Understanding (MoU) with selected companies.
  • Regular reporting on investment, production, and sales.
  • Verification of performance metrics and disbursement of incentives based on achievement.

₹ Budget Allocation

197000

Funding Ratio (Centre:State): 100% Central Government (Central Sector Scheme)

UPSC Relevance

GS Paper: GS3

Prelims Relevance9%
Mains Relevance9%

Syllabus Tags

ManufacturingAtmanirbhar BharatExportEconomyGS3

Historical Context

First launched in March 2020 for three sectors (Mobile/Electronics, Pharma, Medical Devices); later expanded to 14 sectors in 2021.