Production Linked Incentive Scheme
                     Production Linked 
Incentive Scheme
March 2022
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Vision behind PLI Scheme
01 02 03 04 05
Atmanirbhar Focus on Aim to make Attract Help India be 
Bharat & building India an export investment in an integral 
Make in India manufacturing hub core competency part of global 
ecosystem in areas supply chain 
India
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PLI Scheme 
Simple and direct incentives Focus on attracting large 
based on incremental sales investments 
Key features of PLI 
Schemes
Non-tariff measure to compete 
more effectively with cheap Simplified application 
imports procedure
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Objectives & Expectations
Objectives Expectations
Select few and make them torch bearers • Incremental turnover: ~ USD 500 bn 
• Investment: USD 30 bn by FY25 
Identify sectors and products
• Global scale production facilities
Unique evaluation - percentile
• Export promotion & import 
Empowered bureaucracy substitution
• Align industrial development with 
Other benefits continue global trends including ESG
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General parameters
Sector specific Fixed Threshold Investment
Incentive on Net Incremental Sales or cost reimbursement
Requirement to meet the prescribed domestic 
value addition 
Conditions regarding exports to be fulfilled, depending on 
scheme to scheme
Cumulative employment generation 
Manufacturing capacity & extent of integration
Minimum Compound Annual Growth Rate 
(CAGR) in sales
Specified category of products with minimum sales 
* Please note, these are general parameters of a particular scheme and actual parameters vary from scheme to scheme
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Why evaluate PLI
Total identified 14 sectors
Substantial incentive Adequate budgetary 
percentage provision
Re-engineering supply Competitor analysis –
chain If not me someone else 
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Status of PLI Schemes
Large Scale Electronics Food Processing Industry Manufacturing Of Advance Chemistry Cell 
Manufacturing Medical Devices (ACC) Battery
Closed Closed Closed Closed
Information Technology Automobiles & Auto Pharmaceuticals Drugs Telecom & Networking 
Hardware Components 2.0 Products
Closed Closed Closed Closed
Textile Products: MMF Design-led manufacturing High Efficiency Solar PV 
Segment and Technical Semi-conductors and for augmenting 
display fabs ModulesTextiles infrastructure for 5G
Closed Closed TBN Closed*
Specialty Steel Pharma 1.0 - Drones and Drone 
White Goods (ACs & 
API/KSMs/DIs Components LED)
Open Open for 
specified APIs Open Open
* Likely to be re-opened
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Success of notified PLI schemes 
Resounding success of PLI schemes
PLI schemes have        Large no of applications Significant investments Augment production 
been a huge success received from various committed by applicants and raise direct  
players employments
Selected Applicants of Key PLI schemes
• Large Scale Electronics Manufacturing: 16 applicants selected including Samsung, Foxconn, Pegatron, Lava, Micromax
• Auto: 95 applicants selected for OEM Champion and Component scheme including Suzuki Motors, Mahindra, Maruti Suzuki
• Pharmaceuticals: 55 applicants selected including Sun Pharmaceutical, Dr. Reddy’s Laboratories, Lupin
• Food: Total 143 applicants selected including Britannia, Haldiram, ITC, HUL, Nestle, Dabur, Parag Milk Foods 
• IT Hardware: 14 applicants selected including Dell, ICT, Rising Stars, Lava, Dixon, Micromax
• White Goods: 42 applicants selected including Daikin Airconditioning, Hindalco Industries, Havells India
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Boost to Conventional and Unconventional players
Conventional Players Unconventional Players
» Samsung » Axis Clean Mobility Private Limited
» Maruti Suzuki India Limited » Booma Innovative Transport Solutions 
Private Limited
» Foxconn
» Elest Private Limited
» Dell
» Hop Electric Manufacturing Private 
» Britannia Industries Limited Limited
» Nestle India Limited » Ola Electric Technologies Private Limited
» Cipla Limited » Powerhaul Vehicle Private Limited
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Picture so far
Initial plan of the Government
01 • PLIs announced for 13 sectors• Incentive earmarked INR 1.97 lakh crores or USD 26 bn
Actual Plan 
• Total PLI schemes announced till date: 13+1
• Revised incentive earmarked: INR 2.92 lakh crores or USD 38.2 bn
02 • Applicants selected: ~500 across PLI schemes
• Investment committed by applicants: INR 3.86 lakh crores (includes committed and expected)
• Range of incentives as a percentage of turnover: From 1%-50%
Future plan
• PLIs still open: Drones, Pharma 1.0, Steel, White Goods and Solar (additional outlay)
03 • Scheme yet to be announced: Design led manufacturing for 5G
• Sectors still to be tapped: Aerospace, Defence, R&D, capital goods etc.
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Thoughts for the road
PLI to be looked in the context not in isolation
• Income tax rate – New manufacturing companies eligible for reduced rate of 15%
• Removal of SEZ holidays – WTO impact 
• Phased manufacturing programmes – selective tariff incentives
• State incentives, sectoral schemes by Central Government 
Not a one-time programme
• Budget not exhausted
• Government focus on capex in budget 2022
• Need to align sector objectives with Government objectives
• Focus not only on Centre, but also on States
Active interaction with Government is the key
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Q&A
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