At a glance
PLI schemes pay companies a cash incentive linked to their extra (incremental) sales of goods made in India over a base year. The idea is to attract large-scale manufacturing, cut imports and raise exports, in line with Atmanirbhar Bharat and Make in India.
Key facts
- Launched: 2020 (first three schemes approved in March 2020; ten more announced in November 2020)
- Sectors: 14
- Total outlay: ₹1.97 lakh crore (over US$24 billion)
- Incentive basis: a percentage of incremental sales over a base year, for a fixed period
- Electronics scheme: PLI for Large Scale Electronics Manufacturing (mobile phones and specified components), run by MeitY
- Results to August 2024 (all sectors): about ₹1.46 lakh crore invested, ₹12.50 lakh crore of extra production/sales, over 9.5 lakh jobs, exports above ₹4 lakh crore
- Mobile phones: India turned from a net importer to a net exporter; domestic output rose from 5.8 crore units (2014-15) to 33 crore units (2023-24)
- Implementation: each scheme is run by its own nodal ministry or department
How it works
The 14 sectors
| Group | Sectors |
|---|---|
| Electronics and tech | Large-scale electronics (mobile phones and components), IT hardware, telecom and networking products |
| Health | Key starting materials/drug intermediates and APIs, pharmaceutical drugs, medical devices |
| Mobility and energy | Automobiles and auto components, Advanced Chemistry Cell (ACC) batteries, high-efficiency solar PV modules |
| Others | Specialty steel, white goods (ACs and LEDs), food products, textiles (MMF and technical textiles), drones and drone components |
A company qualifies by committing to minimum investment and sales thresholds. It then claims an incentive each year on sales above the base year. Because the money depends on output, the scheme rewards scale rather than just capacity.
Recent developments
- 25 Oct 2026: Market trackers reported Chinese brands' share of India's smartphone market at an eight-year low — 68% in July–September 2026 (Omdia; 67% per Counterpoint), down from 75% a year earlier. Indian brands rose to 7%. Total shipments fell to about 35.8 million, a decade low, as record memory-chip prices pushed up phone prices. (Omdia and Counterpoint are private research firms, not government sources.)
Exam traps
- PLI pays on incremental sales, not on investment alone.
- There are 14 sectors, not 13; the total outlay is ₹1.97 lakh crore.
- The first PLI schemes (electronics, APIs/KSMs, medical devices) came in March 2020; the other ten followed in November 2020.
- The electronics PLI is under MeitY, not the Ministry of Commerce.
- Smartphone market-share figures in the news come from private trackers, not the government.
Quick check
- Q: How many sectors are covered by PLI schemes? A: 14.
- Q: What is the combined outlay? A: ₹1.97 lakh crore.
- Q: Which ministry runs the PLI for large-scale electronics? A: Ministry of Electronics and Information Technology.
Further reading
In the news
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