Production Linked Incentive (PLI) Scheme (MSME-Relevant Sectors)
Ministry of Commerce & IndustryThe PLI Scheme provides performance-linked incentives to eligible manufacturers in selected sectors to increase production, attract investment, strengthen supply chains and improve global competitiveness.
Eligibility Criteria
- Must be a company registered under the Companies Act, 2013
- Manufacturing operations must be located in India
- Applicable to both: MSMEs and Large enterprises (with different thresholds/benefits)
- Must meet sector-specific minimum investment criteria
- Must achieve incremental sales growth over a defined base year
- Availability of audited financial statements
- Minimum revenue/turnover track record (as per sector norms)
- Compliance with statutory requirements (GST, etc.)
Benefits
- Incentives based on incremental production/sales
- Typically ranges between 4% to 10% (sector-specific)
- Defined incentive period (generally up to 5 years)
- Encourages large-scale manufacturing and expansion
- Reduces operational costs and improves margins
- Enhances global competitiveness
- Promotes: Technology upgradation and automation, Export growth and international market access, Integration into global and domestic value chains
- Sector Coverage: Electronics, Pharmaceuticals, Medical devices, Auto components, Textiles, Food processing
- Buyer-seller meets and market linkages
- Special focus on: Women entrepreneurs and SC/ST enterprises
How to Apply
- Apply through sector-specific PLI portals
- Identify relevant sector and scheme guidelines
- Prepare: Investment plan, Production and sales projections
- Submit application through designated portal/authority
- Evaluation based on: Investment commitment, Growth potential
- Approval and onboarding into the scheme
Documents Required
- Certificate of incorporation
- Memorandum & Articles of Association (MoA, AoA)
- PAN, TAN, GST registration
- Audited financial statements
- Bank statements/proof of funds
- Loan sanction letters/equity commitments
- Detailed Project Report (DPR) with projections
- Investment and production plan
- Statutory auditor certification (investment, sales, net worth)
- Board resolution/authorization letter
- MSME proof (Udyam Registration, if applicable)
- Sector-specific documents (fees, employment proof, revenue thresholds, etc.)
Important Disclaimer
We’ve simplified this scheme to help you understand it quickly. For the latest updates or detailed guidelines, you can always check the official government website.
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