---
title: "Production-Linked Incentive Definition | Model Diplomat"
description: "The Production-Linked Incentive (PLI) is a scheme by the Indian government offering cash incentives to boost domestic manufacturing and sales."
url: "https://modeldiplomat.com/learn/glossary/production-linked-incentive"
---

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Model Diplomat Research Team · Last reviewed June 22, 2026

TL;DR

- The Production-Linked Incentive (PLI) is an Indian government scheme that disburses cash incentives to manufacturers as a percentage of incremental sales of goods made in India over a base year.
- How does PLI differ from earlier manufacturing subsidies?
- When was the PLI scheme launched and what was its outlay?
- Which ministries administer PLI and which sectors are covered?
- What are the main criticisms of the PLI scheme?

[Civil Service & Diplomatic Exams](https://modeldiplomat.com/learn/civil-services/glossary)Updated June 22, 2026

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In 2021 the Government of India approved a ₹76,000-crore PLI scheme for semiconductor and display manufacturing, while Foxconn and Samsung expanded mobile-phone assembly under the electronics PLI, helping India turn a net exporter of handsets by 2024.

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