PLI Scheme — Quick Overview
| Scheme Name | PLI Scheme 2026 — Production Linked Incentive | 14 Sectors | ₹1.91 Lakh Crore Outlay |
| Launched By | Government of India |
| Launch Year | 2020 |
| Benefit | 4–18% cash incentive on incremental sales over base year for 5-6 years (sector-dependent) |
| Category | MSME & Industry |
| Last Verified | 23 May 2026 |
| Official Portal | https://dpiit.gov.in |
What is PLI Scheme?
The Production Linked Incentive (PLI) Scheme, launched in 2020 with a total incentive outlay of ₹1.91 lakh crore, is the Government of India's flagship manufacturing reform — rewarding eligible companies with cash incentives of 4% to 18% on incremental sales of goods manufactured in India over a defined base year. PLI is implemented across 14 strategic sectors: mobile manufacturing, large-scale electronics, IT hardware, pharmaceuticals, bulk drugs, medical devices, automobiles & auto components, advanced chemistry cells (ACC) for EV batteries, solar PV modules, drones & drone components, telecom & networking products, white goods (ACs and LEDs), textiles (man-made fibre & technical), speciality steel, and food processing. As of December 2025, PLI has attracted ₹2.16 lakh crore investment, ₹20.41 lakh crore production/sales, ₹8.3 lakh crore exports, and created 14.39 lakh direct + indirect jobs — with ₹28,748 crore already disbursed as incentives. The scheme is administered sector-wise by respective line ministries (MeitY, DoP, MoCIT, etc.) and is a critical pillar of the Make in India and Atmanirbhar Bharat agenda.
Under this scheme, eligible beneficiaries receive 4–18% cash incentive on incremental sales over base year for 5-6 years (sector-dependent). The scheme was launched in 2020 and is implemented by the Government of India.
Benefits of PLI Scheme
4–18% cash incentive on incremental sales over base year for 5-6 years (sector-dependent)
Who is Eligible for PLI Scheme?
- ✓Indian-registered company / LLP / partnership with manufacturing operations in India
- ✓Sector-specific minimum investment threshold (varies — ₹100 crore to ₹2,000 crore by sector)
- ✓Achievement of incremental sales target over defined base year (FY 2019-20 typically)
- ✓Domestic Value Addition (DVA) requirements as per scheme guidelines
- ✓Application within scheme-specific application window (usually 3–6 months from notification)
- ✓Compliance with quality, environmental, and labour standards
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Documents Required for PLI Scheme
How to Apply for PLI Scheme Online?
- 1Identify the PLI scheme applicable to your sector — full list at dpiit.gov.in or respective sector ministry website
- 2Read the scheme guidelines, eligibility thresholds (investment quantum, incremental sales target, DVA %)
- 3Prepare Detailed Project Report (DPR) — investment plan, manufacturing capacity, employment generation, financial projections
- 4Register on the respective sector ministry's PLI portal (MeitY for electronics, DoP for pharma, MoCIT for telecom, MoT for textiles, etc.)
- 5Submit the application with DPR, audited financials, factory/land documents, and bank guarantee
- 6Application evaluation by Empowered Committee — typically takes 60-90 days
- 7On approval, sign the Production Linked Incentive Agreement with the sector ministry
- 8Start manufacturing and meet committed investment/sales/DVA targets each year
- 9File annual claim with audited financials proving incremental sales achievement
- 10Receive incentive disbursement (4–18% of incremental sales) to your bank account — sector ministry releases payment after verification
Official Government Portal
Apply directly on the official government website. This is the only authorised portal — never pay anyone to apply on your behalf.
🔗Apply on dpiit.gov.inFrequently Asked Questions — PLI Scheme
Common Questions About MSME & Industry Schemes
What are the four categories under PM Mudra Yojana in 2026?+
Shishu: up to ₹50,000 for new startups; Kishore: ₹50,001 to ₹5 lakh for growing businesses; Tarun: ₹5 lakh to ₹10 lakh for established businesses; Tarun Plus (launched 2024 Union Budget): ₹10 lakh to ₹20 lakh for those who successfully repaid a Tarun loan.
Which banks offer Mudra loans?+
All PSU banks (SBI, PNB, BOB, etc.), private banks, Regional Rural Banks (RRBs), Microfinance Institutions (MFIs), and NBFCs are registered Mudra lenders. Apply at any branch or online at udyamimitra.in.
What is a greenfield enterprise under Stand Up India?+
A greenfield enterprise means a new business being set up for the first time in manufacturing, services, or trading sectors. Expansion of an existing business does NOT qualify — the loan must be for a new venture.
How to apply for Stand Up India loan?+
Apply at any bank branch or online at standupmitra.in. The portal connects applicants with banks and handholding agencies. You can search for banks by state, district, or loan amount, and submit an Expression of Interest (EOI) online.
What is the maximum project cost under PMEGP?+
For manufacturing sector: Rs.50 lakh project cost (raised from Rs.25 lakh in 2023-24). For business/service sector: Rs.20 lakh. The government subsidy (margin money) ranges from 15 to 35% of the project cost.
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Related MSME & Industry Schemes
PM Mudra Yojana 2026 — Collateral-Free Business Loan ₹50K to ₹20 Lakh
Pradhan Mantri Mudra Yojana offers collateral-free business loans to micro and small enterprises under four categories: Shishu (up to ₹50,000), Kishore (₹50,001–₹5 lakh), Tarun (₹5 lakh–₹10 lakh), and Tarun Plus (₹10 lakh–₹20 lakh, launched 2024 for repeat Tarun borrowers). Over 52 crore loans sanctioned worth ₹27 lakh crore since 2015.
Stand Up India Scheme 2026 — ₹10 Lakh to ₹1 Crore Loan | SC/ST & Women Entrepreneurs
Stand Up India facilitates bank loans between Rs.10 lakh and Rs.1 crore to at least one SC or ST borrower and one woman borrower per bank branch for setting up new greenfield enterprises. Over 2.37 lakh accounts sanctioned worth Rs.55,000 crore since 2016. 7-year repayment period with 18-month moratorium. Apply at standupmitra.in.
PMEGP 2026 — 15–35% Subsidy | Rs.50 Lakh Loan | PM Employment Generation Programme
Prime Minister Employment Generation Programme (PMEGP) provides government subsidy of 15 to 35% on project costs to set up micro-enterprises. Manufacturing sector: up to Rs.50 lakh project cost. Service sector: up to Rs.20 lakh. SC/ST/Women/NE region get 35% subsidy vs 15% for General urban. Implemented by KVIC through banks. Over 9.67 lakh units established creating 77 lakh+ jobs since 2008.
CGTMSE Credit Guarantee Scheme 2026 — ₹5 Crore Collateral-Free MSME Loan Guarantee | cgtmse.in
Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) is the backbone of collateral-free lending to MSMEs in India. It guarantees loans up to ₹5 crore from member banks and financial institutions to micro and small enterprises — without any collateral or third-party guarantee. CGTMSE covers 75-85% of the loan amount (up to 85% for micro enterprises, women entrepreneurs, NER/hilly states). The trust was set up jointly by the Ministry of MSME and SIDBI in 2000. Annual guarantee fee: 0.25-2.0% of the loan amount (subsidised for micro/women). Over 60 lakh guarantees issued worth ₹5 lakh crore+. Member Lending Institutions (MLIs): 130+ banks/NBFCs including PSBs, private banks, RRBs, SFBs, NBFCs. The borrower applies through the bank; the bank applies to CGTMSE for guarantee. New: CGTMSE 2.0 with enhanced limits.