{"id":26132,"date":"2026-02-26T14:01:53","date_gmt":"2026-02-26T08:31:53","guid":{"rendered":"https:\/\/blog.razorpay.in\/blog\/?p=26132"},"modified":"2026-04-14T15:26:34","modified_gmt":"2026-04-14T09:56:34","slug":"production-linked-incentive-scheme-guide","status":"publish","type":"post","link":"https:\/\/razorpay.com\/blog\/production-linked-incentive-scheme-guide\/","title":{"rendered":"Production Linked Incentive (PLI) Scheme: A Guide for Exporters"},"content":{"rendered":"<p>The Production Linked Incentive (PLI) scheme<span style=\"font-weight: 400;\"> is a central part of India\u2019s push to strengthen <\/span>domestic manufacturing<span style=\"font-weight: 400;\"> under <\/span><i>Make in India<\/i><span style=\"font-weight: 400;\">. Instead of supporting businesses through blanket subsidies, the scheme rewards you for producing and selling more from India. For exporters, this matters because scale and competitiveness now decide who survives in global markets.<\/span><\/p>\n<p>PLI marks a clear shift in policy thinking. Incentives depend on actual performance, measured through incremental production and sales. This approach encourages businesses to invest in capacity, improve quality, and meet global benchmarks rather than rely on cost support.<\/p>\n<p>By encouraging firms to plug into Global Value Chains (GVCs), the scheme supports India\u2019s ambition of reaching USD 1 trillion in merchandise exports by 2030.<\/p>\n<div style=\"border-left: 4px solid #0073aa; background: #f0f8ff; padding: 15px; margin: 20px 0; border-radius: 5px;\">\n<h2 style=\"color: #0073aa; font-size: 18px; margin: 0 0 8px 0; display: inline-block;\">Key takeaways<\/h2>\n<ul style=\"display: inline-block; margin: 0 0 0 10px; padding-left: 18px; vertical-align: top;\">\n<li>The PLI scheme encourages exporters to scale production by linking incentives strictly to incremental sales and output, not promised investments.<\/li>\n<li>Long-term benefits depend on improving domestic value addition, as assembly-led exports deliver limited economic and strategic gains.<\/li>\n<li>Exporters must maintain clean documentation and accurate sales reconciliation, as incentive eligibility depends on verified and realised revenues.<\/li>\n<li>Delays in subsidy disbursement and compliance-heavy processes can impact exporter cash flows, making financial planning essential.<\/li>\n<\/ul>\n<\/div>\n<h2><b>What Is the Production Linked Incentive (PLI) Scheme?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The <\/span><b>Production Linked Incentive scheme<\/b><span style=\"font-weight: 400;\"> was launched in March 2020 and later expanded to cover 14 strategic sectors, ranging from electronics and pharmaceuticals to automobiles and textiles. Its purpose is straightforward: encourage companies to manufacture more in India and sell more from India, especially for global markets.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">At its core, the scheme offers <\/span><b>financial incentives<\/b><span style=\"font-weight: 400;\"> of around <\/span><b>4% to 6% on incremental sales<\/b><span style=\"font-weight: 400;\"> of goods manufactured in India. These benefits are open to both Indian companies and foreign firms that have registered manufacturing operations in the country. The Department for Promotion of Industry and Internal Trade (<\/span><b>DPIIT<\/b><span style=\"font-weight: 400;\">) oversees the scheme and acts as the central nodal authority, ensuring consistent implementation across sectors.<\/span><\/p>\n<p><b>Primary objectives of the PLI scheme<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Boost large-scale domestic manufacturing<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Reduce import dependence in critical sectors<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Improve India\u2019s export competitiveness<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Attract long-term investment into production capacity<\/span><\/li>\n<\/ul>\n<h3><b>How Does the Performance-Linked Mechanism Work?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The incentive kicks in only when measurable growth happens.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Each sector defines a base year, and incentives apply only to production beyond that level.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Companies must commit to minimum investment thresholds to qualify.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The incentive window usually spans five to six years, depending on the sector.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Payouts happen only after confirmed sales, not on planned or estimated output.<\/span><\/li>\n<\/ul>\n<h3><b>Who Are the Target Beneficiaries of the PLI Scheme?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The policy focuses on two broad groups. The first includes large-scale manufacturers, especially in electronics and high-value sectors, positioned as Global Champions competing internationally. The second covers MSMEs in selected industries, treated as Domestic Champions with scale-up potential. Notably, the scheme strongly favours greenfield investments, encouraging new plants and fresh capacity rather than just expanding existing facilities.<\/span><\/p>\n<h2><b>Why Is the PLI Scheme Critical for Indian Exporters?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">For Indian exporters, the <\/span><b>PLI scheme<\/b><span style=\"font-weight: 400;\"> directly addresses a long-standing problem: higher manufacturing costs compared to global peers. These \u201cdisability\u201d costs\u2014such as logistics inefficiencies, scale disadvantages, and higher input dependencies\u2014often made Indian goods less competitive overseas. By linking incentives to incremental output, PLI helps offset these gaps without distorting prices or encouraging inefficiency.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The scheme also strengthens India\u2019s<\/span><b> foreign exchange <\/b><span style=\"font-weight: 400;\">position. Higher exports translate into stronger forex inflows and gradually reduce pressure on the <\/span><b>trade deficit.<\/b><span style=\"font-weight: 400;\"> This shift is already visible in sectors like mobile phones, where India has moved from being a large importer to a net exporter within a few years.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">PLI has also aligned India with the global <\/span><b>China Plus One<\/b><span style=\"font-weight: 400;\"> strategy. As multinational companies look to diversify supply chains, the scheme makes India a credible alternative by offering scale, policy stability, and predictable incentives.<\/span><\/p>\n<h3><b>How Does PLI Drive Integration into Global Supply Chains?<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Large <\/span><b>anchor manufacturers (OEMs)<\/b><span style=\"font-weight: 400;\"> set up or expand operations in India, bringing their global vendor networks with them.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Sector-specific localisation requirements help build domestic component and supplier ecosystems over time.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Higher production volumes justify investments in tooling, testing, and quality upgrades across the supply chain.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">PLI-linked investments often include R&amp;D and technology transfer, raising India\u2019s position in the value chain.<\/span><\/li>\n<\/ul>\n<h3><b>What Is the Impact on Cross-Border Payment Volumes?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">As PLI-supported <\/span><b>exports<\/b> <b>scale up<\/b><span style=\"font-weight: 400;\">, inward foreign remittances rise in both volume and frequency. Exporters must track incremental sales accurately to claim incentives, which increases the need for clean payment reconciliation and timely credit confirmations. High-volume exporters also gain from lower per-transaction costs, as larger and predictable inflows improve negotiating power with banks and payment partners, making international collections more efficient and transparent.<\/span><\/p>\n<h2><b>Which Sectors are Eligible for PLI Scheme Details?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The PLI framework currently covers 14 identified sectors, each chosen for its ability to scale manufacturing, reduce import dependence, or drive exports. While some sectors focus on replacing critical imports, others are clearly geared towards building export capacity, with electronics and automobiles receiving the highest financial outlays due to their global scale and multiplier effect.<\/span><\/p>\n<h3><b>High-Growth Sectors for Exporters<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">These sectors offer the strongest opportunities for exporters looking to integrate with global supply chains and generate cross-border revenue.<\/span><\/p>\n<h4><b>Mobile Manufacturing and Specified Electronic Components<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">This segment aims to shift global assembly and component production to India. The policy has helped attract manufacturers supplying to brands such as <\/span><b>Apple<\/b><span style=\"font-weight: 400;\"> and <\/span><b>Samsung<\/b><span style=\"font-weight: 400;\">, positioning India as a key export base for smartphones and parts.<\/span><\/p>\n<h4><b>Pharmaceuticals and Active Pharmaceutical Ingredients (APIs)<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">The focus here is on lowering dependence on China for critical raw materials while strengthening India\u2019s position as a leading exporter of affordable generic medicines and formulations.<\/span><\/p>\n<h4><b>Automobiles and Auto Components<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">PLI incentives encourage investment in <\/span><b>electric vehicles (EVs)<\/b><span style=\"font-weight: 400;\">, advanced batteries, and high-value auto components, helping Indian suppliers plug into global automotive supply chains.<\/span><\/p>\n<h4><b>Textile Products (MMF and Technical Textiles)<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">This segment targets man-made fibre (MMF) and technical textiles, where India has historically lagged. The goal is to regain global market share in high-margin textile exports rather than low-value cotton products.<\/span><\/p>\n<p style=\"text-align: center;\"><a style=\"background-color: #1a73e8; color: #ffffff; font-weight: 800; padding: 7px 15px; border-radius: 7px; font-size: 16px; text-decoration: none; display: inline-block; white-space: nowrap;\" href=\"https:\/\/razorpay.com\/international-payment-gateway-india\/?utm_source=blog&amp;utm_medium=referral&amp;utm_campaign=internationalpayments\">Explore Razorpay&#8217;s Global Payment Solutions<\/a><\/p>\n<h3><b>PLI-Covered Sectors\u00a0<\/b><\/h3>\n<table>\n<tbody>\n<tr>\n<td><b>Sector<\/b><\/td>\n<td><b>Approx. Outlay (\u20b9 crore)<\/b><\/td>\n<td><b>Primary Objective<\/b><\/td>\n<\/tr>\n<tr>\n<td><b>Mobile Manufacturing<\/b><span style=\"font-weight: 400;\"> &amp; Electronic Components<\/span><\/td>\n<td><span style=\"font-weight: 400;\">40,951<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Export-led<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">IT Hardware<\/span><\/td>\n<td><span style=\"font-weight: 400;\">17,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Export-led<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Pharmaceuticals<\/span><\/td>\n<td><span style=\"font-weight: 400;\">15,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Export-led<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Bulk Drugs (APIs)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">6,940<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Import substitution<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Automobiles &amp; Auto Components<\/span><\/td>\n<td><span style=\"font-weight: 400;\">25,938<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Export-led<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Advanced Chemistry Cell (ACC) Batteries<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18,100<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Domestic + Export<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Telecom &amp; Networking Products<\/span><\/td>\n<td><span style=\"font-weight: 400;\">12,195<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Export-led<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Textile Products (MMF &amp; Technical Textiles)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">10,683<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Export-led<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Food Processing<\/span><\/td>\n<td><span style=\"font-weight: 400;\">10,900<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Domestic-focused<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">White Goods (ACs &amp; LEDs)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">6,238<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Import substitution<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Solar PV Modules<\/span><\/td>\n<td><span style=\"font-weight: 400;\">24,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Import substitution<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Specialty Steel<\/span><\/td>\n<td><span style=\"font-weight: 400;\">6,322<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Domestic + Export<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Drones &amp; Drone Components<\/span><\/td>\n<td><span style=\"font-weight: 400;\">120<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Export-led<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Medical Devices<\/span><\/td>\n<td><span style=\"font-weight: 400;\">3,420<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Export-led<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<div style=\"border-left: 4px solid #0073aa; background: #f0f8ff; padding: 15px; margin: 20px 0; border-radius: 5px;\">\n<h2 style=\"color: #0073aa; font-size: 18px; margin: 0;\">Did You Know?<\/h2>\n<p style=\"margin-top: 10px;\"><i><span style=\"font-weight: 400;\">Even with a PLI outlay of just \u20b96,322 crore, the Specialty Steel scheme has already pulled in \u20b943,874 crore of committed investment, showing how strongly industry responds to targeted incentives.<\/span><\/i><\/p>\n<\/div>\n<h2><b>How Are PLI incentives Calculated for Cross-Border Sales?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">PLI incentives follow a clear, numbers-based method, which makes accurate reporting critical\u2014especially for exporters.<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Start With Incremental Sales:<\/b><span style=\"font-weight: 400;\"> Incremental sales mean the increase in your sales compared to the notified base year.<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">\u00a0<\/span><b>Incremental Sales=Current Year Sales\u2212Base Year Sales<\/b><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Apply the Incentive Rate:<\/b><span style=\"font-weight: 400;\"> Each sector has a fixed incentive percentage.<\/span><\/li>\n<\/ol>\n<p><b>PLI Incentive=Incremental Sales\u00d7Incentive Rate<\/b><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Verify Export Realisation:<\/b><span style=\"font-weight: 400;\"> For cross-border sales, authorities verify <\/span><b>export revenue<\/b><span style=\"font-weight: 400;\"> using shipping bills and <\/span><b>bank realisation certificates<\/b><span style=\"font-weight: 400;\"> (BRCs). Export proceeds are converted into INR using prescribed exchange rates.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Exclude Taxes and Duties:<\/b><span style=\"font-weight: 400;\"> Sales value usually excludes GST, customs duties, and other indirect taxes. Only the net realised value of manufactured goods qualifies for incentive calculations.<\/span><\/li>\n<\/ol>\n<h2><b>What Are the Challenges for Exporters Under the PLI Scheme?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">While the PLI scheme supports scale, many exporters still struggle with <\/span><b>low value addition<\/b><span style=\"font-weight: 400;\">. In several sectors, firms focus on final assembly using imported components. This limits domestic economic gains and reduces the long-term impact of incentives. As a result, export growth does not always translate into deeper manufacturing capability within India.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Another constraint comes from <\/span><b>World Trade Organisation (WTO) constraints<\/b><span style=\"font-weight: 400;\">. Global trade rules restrict export-contingent subsidies, which forces the government to design PLI incentives carefully. This limits flexibility and often slows policy adjustments when market conditions change.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Exporters also face a growing <\/span><b>compliance burden<\/b><span style=\"font-weight: 400;\">. Frequent audits, reconciliation of sales data, and documentation checks increase administrative effort. On top of this, delays in <\/span><b>subsidy disbursement<\/b><span style=\"font-weight: 400;\"> can strain working capital, especially for businesses operating on thin margins.<\/span><\/p>\n<h3><b>The \u201cAssembly vs. Manufacturing\u201d Debate<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">High import content in finished exports\u2014such as mobile phones\u2014reduces the net benefit to the economy, even when export numbers look strong.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The government now pushes component localisation to move beyond basic assembly work.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Local sourcing improves resilience but requires scale, capital, and time.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Producing complex sub-assemblies like displays or camera modules remains difficult due to technology gaps and limited domestic ecosystems.<\/span><\/li>\n<\/ul>\n<h3><b>Assembly Model vs Deep Manufacturing<\/b><\/h3>\n<table>\n<tbody>\n<tr>\n<td><b>Aspect<\/b><\/td>\n<td><b>Assembly Model<\/b><\/td>\n<td><b>Deep Manufacturing Model<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Domestic value addition<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Low<\/span><\/td>\n<td><span style=\"font-weight: 400;\">High<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Import dependency<\/span><\/td>\n<td><span style=\"font-weight: 400;\">High<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Lower over time<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Skill development<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Limited<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Significant<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Long-term competitiveness<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Weak<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Strong<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><b>How Will the PLI 2.0 Package Evolve for Global Trade?<\/b><\/h2>\n<p><b>PLI 2.0<\/b><span style=\"font-weight: 400;\"> is expected to move beyond volume-driven incentives and focus more sharply on domestic value addition. Instead of rewarding final assembly alone, future payouts may depend on how much of the product is actually made in India\u2014components, inputs, and processes included. This shift aims to build stronger local supply chains and help Indian manufacturers capture more value within global trade flows.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The next phase may also widen the net. Policymakers are considering <\/span><b>labour-intensive sectors<\/b><span style=\"font-weight: 400;\"> such as leather and footwear. which can generate large-scale employment and exports. At the same time, a proposed \u201cGreen PLI\u201d framework would encourage energy-efficient and low-carbon <\/span><b>manufacturing<\/b><span style=\"font-weight: 400;\"> to meet sustainability expectations in global markets. Supporting all this is a push towards simpler, <\/span><b>digital<\/b><span style=\"font-weight: 400;\">-first applications and verification, reducing paperwork and speeding up incentive claims for businesses.<\/span><\/p>\n<h2><b>Optimising Export Revenue With Razorpay MoneySaver Export Account<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">As PLI incentives depend on accurate, realised export revenue, how you collect overseas payments directly affects both cash flow and compliance. The Razorpay MoneySaver Export Account is designed to remove friction from this last mile of the export cycle.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It lets overseas clients pay you in USD, EUR, GBP, and other currencies through local bank transfers, with funds settled into your Indian bank account in INR.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">By reducing international transfer charges and eliminating hidden currency conversion markups, exporters can save up to 75% on bank fees, directly improving margins on incremental sales.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The platform automatically generates electronic Foreign Inward Remittance Advices (e-FIRAs), simplifying the documentation required to validate export earnings for PLI incentive claims.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">With single-click access to ACH, SEPA, and SWIFT transfers, MoneySaver lowers reconciliation effort and speeds up the realisation of global revenue, supporting healthier working capital cycles.<\/span><\/li>\n<\/ul>\n<div style=\"background: #f5faff; border-radius: 14px; padding: 30px; text-align: center; margin: 42px 0; box-shadow: 0 8px 20px rgba(26,115,232,0.08);\">\n<h2 style=\"color: #1a73e8; font-size: 24px; font-weight: bold; margin-bottom: 12px;\"><strong>Start collecting global export payments with Razorpay<\/strong><\/h2>\n<p style=\"color: #444; font-size: 16px; max-width: 720px; margin: 0 auto 18px; line-height: 1.6;\"><strong>Power your global business the right way. Switch from traditional banking to a<\/strong><br \/>\n<strong>compliant, business-grade international payment solution.<\/strong><\/p>\n<p><a style=\"display: inline-block; background: #1a73e8; color: #ffffff; padding: 14px 26px; font-size: 16px; font-weight: bold; border-radius: 10px; text-decoration: none;\" href=\"https:\/\/razorpay.com\/accept-international-payments\/bank-transfers\/?utm_source=blog&amp;amp;utm_medium=referral&amp;amp;utm_campaign=internationalpayments%22%3E%3Cem%3E%3Cstrong%3ERazorpay%E2%80%99s&quot;\">Explore Razorpay\u2019s MoneySaver Export Account<\/a><span style=\"font-size: 19px; background-color: #ffffff;\">\u00a0<\/span><\/p>\n<\/div>\n<h2><b>Conclusion<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The <\/span><b>PLI scheme<\/b><span style=\"font-weight: 400;\"> stands out as a clear turning point in India\u2019s manufacturing and <\/span><b>export strategy<\/b><span style=\"font-weight: 400;\">. By rewarding performance rather than promise, it encourages companies to scale production, improve quality, and integrate more deeply with global markets. Together, these shifts strengthen India\u2019s position as a credible, long-term <\/span><b>manufacturing and export hub<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For businesses, the message is straightforward. Growth plans need to align with PLI-eligible sectors, with a strong focus on value addition and global competitiveness. Incentives can accelerate expansion, but lasting gains will depend on disciplined compliance and the ability to scale production reliably for international demand.<\/span><\/p>\n<h2><b>FAQs<\/b><\/h2>\n<h3><b>Q1. What is the primary goal of the Production Linked Incentive scheme?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The <\/span><b>PLI scheme<\/b><span style=\"font-weight: 400;\"> aims to strengthen domestic manufacturing, attract large-scale investment, and make Indian industries globally competitive by rewarding incremental production and sales.<\/span><\/p>\n<h3><b>Q2. How are the incentive rates determined for manufacturers?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Eligible companies receive incentives, typically <\/span><b>between 4% and 6%<\/b><span style=\"font-weight: 400;\">, calculated on incremental production or sales over a defined base year.<\/span><\/p>\n<h3><b>Q3. Which sectors are currently eligible for PLI scheme benefits?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The scheme covers <\/span><b>14 sectors<\/b><span style=\"font-weight: 400;\">, including mobile manufacturing, automobiles, pharmaceuticals, medical devices, textiles, and high-efficiency solar modules.<\/span><\/p>\n<h3><b>Q4. Is the PLI scheme applicable to foreign companies?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Yes. Both Indian and foreign companies can apply, provided they are legally registered and manufacture goods in India.<\/span><\/p>\n<h3><b>Q5. How does the PLI scheme benefit Indian exporters specifically?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">It helps offset cost disadvantages, supports integration into global value chains, and encourages exporters to scale up in high-growth, export-oriented sectors.<\/span><\/p>\n<h3><b>Q6. What role does the DPIIT play in the PLI framework?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The <\/span><b>DPIIT<\/b><span style=\"font-weight: 400;\"> acts as the nodal agency, overseeing coordination, implementation, and monitoring across ministries.<\/span><\/p>\n<h3><b>Q7. How do proposed PLI 2.0 reforms affect existing manufacturers?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">PLI 2.0 is expected to place greater emphasis on domestic value addition and localisation, with possible expansion into labour-intensive sectors such as leather and footwear.<\/span><\/p>\n<p><script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\",\n  \"@type\": \"FAQPage\",\n  \"mainEntity\": [\n    {\n      \"@type\": \"Question\",\n      \"name\": \"What is the primary goal of the Production Linked Incentive scheme?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"The Production Linked Incentive (PLI) scheme aims to strengthen domestic manufacturing, attract large-scale investment, and make Indian industries globally competitive by rewarding incremental production and sales.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"How are the incentive rates determined for manufacturers?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"Eligible companies receive incentives, typically between 4 percent and 6 percent, calculated on incremental production or sales over a defined base year.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"Which sectors are currently eligible for PLI scheme benefits?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"The scheme covers 14 sectors, including mobile manufacturing, automobiles, pharmaceuticals, medical devices, textiles, and high-efficiency solar modules.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"Is the PLI scheme applicable to foreign companies?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"Yes. 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Instead of supporting businesses through blanket subsidies, the scheme rewards you for producing and selling more from India. For exporters, this matters because scale and competitiveness now decide who survives in global markets. PLI<\/p>\n","protected":false},"author":103,"featured_media":26666,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[1067],"tags":[],"class_list":{"0":"post-26132","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-cross-border"},"_links":{"self":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/26132","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/users\/103"}],"replies":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/comments?post=26132"}],"version-history":[{"count":3,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/26132\/revisions"}],"predecessor-version":[{"id":26159,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/26132\/revisions\/26159"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/media\/26666"}],"wp:attachment":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/media?parent=26132"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/categories?post=26132"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/tags?post=26132"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}