About this MSME 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.
Snapshot for small businesses
| 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 | 4 September 2026 |
| Official Portal | https://dpiit.gov.in |
What MSMEs receive
4–18% cash incentive on incremental sales over base year for 5-6 years (sector-dependent)
Which businesses qualify
- ✓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
Papers for the Udyam / MSME registration
Application walkthrough for founders
- 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
Use dpiit.gov.in directly — there is no application fee, and no third party can speed up your approval.
🔗Apply on dpiit.gov.in