Production Linked Incentive (PLI) Scheme
The Production Linked Incentive (PLI) Scheme is a major Indian industrial policy initiative designed to strengthen domestic manufacturing, attract investment, increase exports, create employment and integrate Indian companies into global supply chains. Launched in 2020 and subsequently expanded across 14 strategic sectors, the scheme provides financial incentives linked to incremental production and sales. It has become one of the central pillars of India's push toward Atmanirbhar Bharat and a larger role in global manufacturing.
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Timeline
1 April 2020
Production Linked Incentive scheme launched
The Government of India launched the Production Linked Incentive scheme to strengthen domestic manufacturing by providing financial incentives to eligible companies based on incremental production and sales.
25 March 2020
India announces Atmanirbhar Bharat manufacturing push
The government announced a broader economic strategy focused on building domestic manufacturing capabilities, strengthening supply chains and reducing excessive dependence on imports. PLI subsequently became a major instrument of this strategy.
11 November 2020
PLI expanded to multiple strategic sectors
The Union Cabinet approved PLI schemes for additional strategic sectors as part of the broader effort to attract investment, increase manufacturing scale and improve India's global competitiveness.
1 March 2021
PLI framework expands across major industries
The PLI framework expanded beyond electronics and pharmaceuticals to sectors including automobiles, telecom, textiles, food products, specialty steel, solar modules, batteries and white goods.
1 June 2021
Large-scale electronics manufacturing accelerates
PLI incentives began supporting large-scale electronics manufacturing, encouraging companies to increase mobile phone and electronics production in India and deepen domestic supply chains.
15 September 2021
Automobile and auto-component PLI approved
The government approved a PLI scheme for automobiles and auto components to promote advanced automotive technology, attract investment and increase domestic manufacturing and exports.
15 September 2021
Advanced Chemistry Cell battery PLI approved
The government approved a PLI scheme for Advanced Chemistry Cell batteries to establish domestic battery manufacturing capacity and support India's electric mobility and energy-storage ecosystem.
15 September 2021
High-efficiency solar PV manufacturing PLI approved
The government approved incentives for high-efficiency solar photovoltaic modules to develop an integrated domestic solar manufacturing ecosystem and reduce import dependence.
1 January 2022
PLI beneficiaries begin scaling manufacturing
Companies across electronics, pharmaceuticals, telecom, automobiles and other PLI sectors began increasing production capacity and making new investments under the incentive framework.
1 October 2022
PLI drives India's electronics manufacturing growth
Large-scale electronics manufacturers expanded production in India, strengthening the country's position in global mobile-phone manufacturing and increasing the domestic electronics supply chain.
31 March 2023
PLI attracts ₹51,000 crore investment
By the end of financial year 2022-23, PLI schemes had attracted approximately ₹51,000 crore of actual investment and generated about ₹4.5 lakh crore in production or sales.
2 August 2023
Government confirms 14 PLI sectors
The government reported that PLI schemes had been announced for 14 key sectors with an overall outlay of ₹1.97 lakh crore, covering electronics, pharmaceuticals, automobiles, telecom, textiles, food processing, steel, solar modules, batteries, drones and other strategic industries.
31 March 2024
PLI investment crosses ₹1.23 lakh crore
By March 2024, 755 applications had been approved across the 14 sectors and the schemes had attracted more than ₹1.23 lakh crore in actual investment.
31 December 2024
PLI investment reaches ₹1.46 lakh crore
By the end of 2024, PLI schemes had attracted ₹1.46 lakh crore in investment, generated ₹12.5 lakh crore in production and sales, produced ₹4 lakh crore in exports and generated 9.5 lakh direct and indirect jobs. More than 1,300 manufacturing units had been established across 14 sectors and 27 States and Union Territories.
31 March 2025
PLI crosses ₹1.61 lakh crore investment
By March 2025, 764 applications had been approved across the 14 PLI sectors. Cumulative investment had reached ₹1.61 lakh crore, production had exceeded ₹14 lakh crore, exports had crossed ₹5.31 lakh crore and more than 11.5 lakh direct and indirect jobs had been generated.
30 September 2025
PLI investment reaches ₹2 lakh crore
By September 2025, actual investment under the PLI schemes had crossed ₹2 lakh crore, while incremental production and sales exceeded ₹18.7 lakh crore and employment generation exceeded 12.6 lakh direct and indirect jobs.
31 December 2025
PLI crosses ₹20 lakh crore production milestone
By 31 December 2025, PLI schemes across 14 sectors had attracted more than ₹2.16 lakh crore in cumulative investment, generated more than ₹20.41 lakh crore in production and sales, and generated exports exceeding ₹8.3 lakh crore. More than 14.39 lakh direct and indirect jobs had been created.
31 March 2026
PLI investment crosses ₹2.40 lakh crore
By 31 March 2026, actual investment under PLI schemes had exceeded ₹2.40 lakh crore, with more than 14.15 lakh direct and indirect employment opportunities reported across the 14 sectors.
1 July 2026
PLI exports cross ₹15 lakh crore
Government data reported that cumulative exports under PLI schemes had reached more than ₹15.2 lakh crore by the end of financial year 2025-26, reflecting the growing role of PLI-supported sectors in India's manufacturing exports.