PLI (Production Linked Incentive) Schemes for Startups

Various PLI schemes across ministries providing incentives for manufacturing and production, with benefits for startups in eligible sectors. Because PLI incentives are calculated as a percentage (roughly 4-6%) of incremental sales above a fixed base year, a startup's realistic payout depends heavily on hitting sector-specific investment and production commitments, which vary by ministry and are generally steepest in electronics, auto components and specialty steel. Startups in lower-capital sectors such as drones, medical devices and food processing have historically found PLI more accessible, since 176 of the roughly 733 total approved applicants across all 14 sectors have been MSMEs rather than large manufacturers.