Production/Investment-Linked Manufacturing Incentive Schemes

PLI schemes disburse incremental output-based incentives over a five-to-seven year horizon to firms crossing baseline investment and turnover thresholds, de-risking greenfield capital expenditure without upfront subsidy. This production-increment design is conceptually distinct from licence-raj-era industrial policy and from SEZ or EOU customs-exemption frameworks. PLI covers fourteen sectors, from electronics to pharmaceuticals, under the Atmanirbhar Bharat framework. Earlier instruments include the Modified Special Incentive Package Scheme (M-SIPS) and investment-linked deductions under Section 35AD of the Income Tax Act, 1961. Crowding in private investment, rather than substituting for it, is the stated mechanism.