Production Linked Incentive (PLI) Scheme Explained
The Production Linked Incentive (PLI) scheme provides financial incentives to companies based on incremental sales of goods manufactured in India, to boost domestic manufacturing.
The Production Linked Incentive (PLI) scheme provides financial incentives to companies based on incremental sales of goods manufactured in India, to boost domestic manufacturing.
How it works
Under PLI, eligible companies receive incentives linked to their increase in production or sales over a base year, encouraging investment and scale in targeted sectors.
Sectors
PLI schemes cover sectors such as electronics, pharmaceuticals, automobiles, telecom and solar modules, aligning with the Atmanirbhar Bharat vision of self-reliance.
Why it matters for UPSC
The PLI scheme's design (incentives on incremental production) and its link to manufacturing self-reliance are commonly tested Economy topics.
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What does the PLI scheme incentivise?
Incremental production or sales of goods manufactured in India.
What is the aim of the PLI scheme?
To boost domestic manufacturing and self-reliance across key sectors.