Union Budget 2023-24
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About Production Linked Incentive (PLI) Schemes

Hon'ble Finance Minister, Smt Nirmala Sitharaman has announced an outlay of INR 1.97 Lakh Crores for the Production Linked Incentive (PLI) Schemes across 14 key sectors, to create national manufacturing champions and to create 60 lakh new jobs, and an additional production of 30 lakh crore during next 5 years. In addition to the three schemes announced earlier in March 2020, GoI has further introduced the following 10 new PLI schemes in November 2020:

    March 2020

    • Key Starting Materials (KSMs)/Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs): Department of Pharmaceuticals
    • Large Scale Electronics Manufacturing: Ministry of Electronics and Information Technology
    • Manufacturing of Medical Devices: Department of Pharmaceuticals

    November 2020:

    • Electronic/Technology Products: Ministry of Electronics and Information Technology
    • Pharmaceuticals drugs: Department of Pharmaceuticals
    • Telecom & Networking Products: Department of Telecommunications
    • Food Products: Ministry of Food Processing Industries
    • White Goods (ACs & LED): Department for Promotion of Industry and Internal Trade
    • High-Efficiency Solar PV Modules: Ministry of New and Renewable Energy
    • Automobiles & Auto Components: Department of Heavy Industry
    • Advance Chemistry Cell (ACC) Battery: Department of Heavy Industry
    • Textile Products: MMF segment and technical textiles: Ministry of Textiles
    • Specialty Steel: Ministry of Steel

    September 2021

    • Drones and Drone Components: Ministry of Civil Aviation

    As on December 2022, 650 applications have been approved under 13 Schemes and more than 100 MSMEs are among the PLI beneficiaries in sectors such as Bulk Drugs, Medical Devices, Telecom, White Goods and Food Processing.

    Production Linked Incentives (PLI)

    1
    Auto Components
    The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi announced the Production-Linked Incentive (PLI) Scheme in the Automobile and Auto Components sectors. The PLI scheme (outlay of $ 3.5 Bn) for the automobile sector proposes financial incentives of up to 18% to boost domestic manufacturing of advanced automotive technology products and attract investments in the automotive manufacturing value chain. Incentives are applicable for determined sales of products manufactured in India from April 1, 2022, for a period of five consecutive years.

    The scheme was closed on 9th January 2022.

    Total 95 applicants have been approved under this PLI scheme: 20 under Champion OEM and 75 under Component champion.
    Auto Components

    INR 25,938 cr

    Scheme Outlay

    Auto components
    2
    Automobile
    The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi announced the Production-Linked Incentive (PLI) Scheme in the Automobile and Auto Components sectors. The PLI scheme (outlay of $ 3.5 Bn) for the automobile sector proposes financial incentives of up to 18% to boost domestic manufacturing of advanced automotive technology products and attract investments in the automotive manufacturing value chain. Incentives are applicable for determined sales of products manufactured in India from April 1, 2022, for a period of five consecutive years.

    The scheme was closed on 9th January 2022.

    Total 95 applicants have been approved under this PLI scheme: 20 under Champion OEM and 75 under Component champion.
    Automobile

    INR 25,938 cr

    Scheme Outlay

    AUTOMOBILE
    3
    Aviation
    The Central Government under the leadership of Hon’ble Prime Minister Shri Narendra Modi, has approved the Production-Linked Incentive (PLI) scheme for dronesand drone components. The PLI scheme comes as a follow-through of the liberalised Drone Rules, 2021 released by the Central Government on 25 August 2021. The PLI scheme and new drone rules are intended to catalyse super-normal growth in the upcoming drone sector.
    Last date for submitting the application form is 20th May 2022
    outlay

    INR 120 cr

    Scheme Outlay

    Drone
    4
    Chemicals
    Launched and approved in 2021 at a budgetary layout of INR 18100 Crore over a 5-year period. Under the scheme, the government seeks to boost local manufacturing of advanced chemistry cell to bring down prices of battery in the country, which will reduce the cost of electric vehicles as well. The scheme was designed to be technology-agnostic. The beneficiary firm were free to choose suitable advanced technology, machinery, raw materials and other intermediate goods for setting up cell manufacturing facility to cater for any application. This scheme was oversubscribed by 2.6 times (130 gwh). After final evaluation, a total of 4 companies were selected for incentives under Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC) Battery Storage. This includes Reliance New Energy Solar Limited (5GWh Awarded and 15 GWh waitlisted); Ola Electric Mobility Private Limited (20 GWh awarded); Hyundai Global Motors Company Limited (20 GWh awarded) and Rajesh Exports Limited (5GWh awarded).
    Scheme Outlay

    INR 18,100 Cr

    Scheme Outlay

    ACC battery cell
    5
    Electronic Systems
    The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi has given its approval to introduce the Production-Linked Incentive (PLI) Schemes for Large Scale Electronics Manufacturing and IT Hardware for Enhancing India’s Manufacturing Capabilities and Enhancing Exports – Atmanirbhar Bharat.
    Scheme Outlay

    INR 40,951 cr

    PLI for Large Scale Electronics Manufacturing

    Scheme Outlay

    INR 7,325 cr

    PLI for IT Hardware

    ESDM
    6
    Medical Devices
    The Indian Government has identified medical devices as a priority sector for the flagship 'Make in India' program and is committed to strengthening the manufacturing ecosystem. The Production Linked Incentive Scheme (PLI) Promoting Domestic Manufacturing of Medical Devices and Production Linked Incentive Scheme for Pharmaceuticals (PLI 2.0) have been introduced to provide an impetus to India’s vision of becoming a global manufacturing hub for medical devices.
    Outlay

    18420 Cr

    Schemes Outlay

    Medical Devices
    7
    Metals & Mining
    The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi has given its approval to introduce the Production-Linked Incentive (PLI) Scheme in Specialty Steel for Enhancing India’s Manufacturing Capabilities and Enhancing Exports – Atmanirbhar Bharat. The last date of application was 15th September 2022, and the applications are now closed.
    icon

    INR 6,322 cr

    Scheme outlay

    Steel PLI
    8
    Pharmaceuticals
    The Indian pharmaceuticals market is supported by the following Production Linked Incentive Schemes to boost domestic manufacturing capacity, including high-value products across the global supply chain.

    1. PLI Scheme for Key Starting Materials (KSMs)/Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs) (PLI 1.0)
    2. Production-Linked Incentive (PLI) Scheme for Pharmaceuticals d (PLI 2.0)
    PLI in Pharmaceuticals

    Scheme Outlay INR 6,940 crores

    PLI for Bulk Drugs

    PLI Scheme for Pharmaceuticals Manufacturing

    Scheme Outlay INR 15,000 crores

    PLI Scheme for Pharmaceuticals Manufacturing

    PLI in Pharmaceuticals
    9
    Renewable Energy
    The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi has given its approval to introduce the Production-Linked Incentive (PLI) Scheme in High Efficiency Solar PV Modules for Enhancing India’s Manufacturing Capabilities and Enhancing Exports – Atmanirbhar Bharat.
    icon

    INR 24,000 cr

    Scheme Outlay

    Solar module

    Products

    10
    Telecom
    The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi had given its approval to introduce the Production-Linked Incentive (PLI) Scheme in Telecom & Networking Products sector for Enhancing India’s Manufacturing Capabilities and Enhancing Exports – Atmanirbhar Bharat. In October 2021, 31 companies (including both domestic and global companies) were provided approval under the PLI Scheme. These companies are expected to invest $450 mn, generate 40,000 jobs and incremental production of over $24.4 bn throughout the tenure of the PLI Scheme. In June 2022, the Department of Telecommunications (DoT) amended the guidelines for PLI Scheme to introduce Design-led Manufacturing Scheme as part of the PLI Scheme with additional incentives worth more than INR $533.33 mn.

    For more information: https://pli-telecom.udyamimitra.in/

    Last date for application: 25 August 2022
    Scheme Outlay

    INR 12,195 cr

    Scheme Outlay

    Telecommunication
    11
    Textiles & Apparel
    Government has launched the Production Linked Incentive (PLI) Scheme with an approved outlay of INR 10,683 crore to promote production of MMF Apparel, MMF Fabrics and Products of Technical Textiles in the country to enable Textiles Industry to achieve size and scale and to become competitive. Applications under PLI Scheme for Textiles were received through web portal from 01.01.2022 to 28.02.2022. A total of 67 applications have been received. Selection Committee chaired by Secretary (Textiles) has selected 64 applicants under the scheme. 56 applicants have completed the mandatory criteria for formation of a new company and approval letters have been issued to them. Investment to the tune of INR 1536 crore approximately has been made so far. Quality Control Order wrt VSF is under issuance.
    icon

    INR 10,683 cr

    Scheme Outlay

    Textiles

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