Make in India and PLI Schemes
What PLI Schemes Are
Production Linked Incentive schemes pay companies a percentage of extra sales made in India over several years, rewarding output rather than just investment.
PLI schemes are the main tool of the manufacturing push after 2020.
How they work
A company that meets set investment and sales targets receives a share of its incremental sales as a cash incentive, often 4 to 6 per cent for a number of years.
Why output-linked
The government pays only if production actually happens.
Sectors
The schemes began with mobile phones in 2020 and expanded to about a dozen more sectors, including pharmaceuticals, auto parts, solar modules and white goods.
Scale
The combined outlay across schemes runs to roughly ₹2 lakh crore.
A phone maker whose India-made sales grow beyond its base year earns a percentage of that growth.
Incentives depend on meeting targets.
- PLI pays for extra production.
- It began with phones in 2020.
- It covers many sectors.
- Outlay is around ₹2 lakh crore.
No recording for this one yet - EconReader can read it aloud for you.