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UPSC Notes

Production Linked Incentive (PLI) Scheme

PYQs

12

Articles

2

Momentum

31

Phase IFoundation

Background

Overview

UPSC frequently examines government schemes, their objectives, implementation, impact on economic growth, employment, and specific sectors, aligning with 'Make in India' and 'Atmanirbhar Bharat' initiatives.

The Production Linked Incentive (PLI) scheme is a flagship government initiative designed to boost domestic manufacturing and exports by offering incentives on incremental sales from products manufactured in India. It aims to make Indian manufacturers globally competitive, attract investment, enhance exports, and create employment across various strategic sectors.

Phase IIStatic core

Facts & tables

Key facts

Objective

Promote domestic manufacturing, reduce import dependence, and enhance exports.

Mechanism

Provides incentives (typically 4-6% on incremental sales) to companies for products manufactured in India.

Coverage

Implemented across 14 key sectors, including automobiles, electronics, pharmaceuticals, and textiles.

Goal

Attract large investments, create jobs, and establish India as a global manufacturing hub.

Launch

Across 2020 and 2021

Number of Schemes

14 schemes

Cumulative Investment

Rs 2.4 lakh crore as of March 2026

Concentration

Highly concentrated, with top five sectors accounting for ~83% of investment and ~86% of direct employment

Reference table

Static syllabus anchors

TypeReference
Conceptual areaIndian Economy

Reference table

Institutions & roles

BodyRole
Government of IndiaDesigns and implements
Ministry of TextilesImplements
Niti AayogMonitors
Phase IIIExam lens

Prelims angle

Overview

Prelims angle: Multi-statement analysis

Prelims angle: Policy measures

Quick revision

  • Government scheme to boost domestic manufacturing.
  • Offers incentives on incremental sales of manufactured goods.
  • Covers 14 key sectors, including textiles.
  • Aims to attract investment, create jobs, and enhance exports.
  • Key component of 'Atmanirbhar Bharat' initiative.

High-confidence PYQs

2026Multi-statement analysis, Factual recall

Which of the following statements with regard to the persons with disabilities in India is/are correct ? 1. The Rights of Persons with Disabilities Act, an ...

Social Issues & SchemesOpen question

Which of the following statements with respect to the Revamped Rashtriya Gram Swaraj Abhiyan (RGSA) is/are correct ? 1. The period of its implementation is ...

Social Issues & SchemesOpen question
2026Multi-statement analysis, Factual recall

Which of the following statements with regard to the persons with disabilities in India is/are correct ? 1. The Rights of Persons with Disabilities Act, an ...

Social Issues & SchemesOpen question

Which of the following statements with respect to the Revamped Rashtriya Gram Swaraj Abhiyan (RGSA) is/are correct ? 1. The period of its implementation is ...

Social Issues & SchemesOpen question
2024Factual recall, Conceptual understanding

With reference to the Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) Yojana, consider the following statements: 1. The entry age group for enrolment in the sc...

Social Issues & SchemesOpen question

With reference to the 'Pradhan Mantri Surakshit Matritva Abhiyan', consider the following statements: 1. This scheme guarantees a minimum package of antenat...

Social Issues & SchemesOpen question
2024Multi-statement analysis, Factual recall

With reference to the Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) Yojana, consider the following statements: 1. The entry age group for enrolment in the sc...

Social Issues & SchemesOpen question

With reference to the 'Pradhan Mantri Surakshit Matritva Abhiyan', consider the following statements: 1. This scheme guarantees a minimum package of antenat...

Social Issues & SchemesOpen question
2023Multi-statement analysis, Policy measures

Consider the following statements in relation to Janani Suraksha Yojana: 1. It is safe motherhood intervention of the State Health Departments. 2. Its object...

Social Issues & SchemesOpen question
2021Multi-statement analysis, Factual recall

With reference to the casual workers employed in India, consider the following statements: 1. All casual workers are entitled for Employees Provident Fund co...

Social Issues & SchemesOpen question
2018Multi-statement analysis, Conceptual understanding

With reference to Pradhan Mantri Kaushal Vikas Yojana, consider the following statements 1. It is the flagship scheme of the Ministry of Labour and Employmen...

Social Issues & SchemesOpen question
2017Statement-based questions, Factual recall

Consider the following in respect of ‘National Career Service’: 1. National Career Service is an initiative of the Department of Personnel and Training, Gov...

Social Issues & SchemesOpen question
2016Multi-statement analysis, Factual recall

With reference to ‘Initiative for Nutritional Security through Intensive Millets Promotion’, which of the following statements is/are correct? 1. This init...

Social Issues & SchemesOpen question

With reference to ‘Pradhan Mantri Fasal Bima Yojana’, consider the following statements: 1. Under this scheme, farmers will have to pay a uniform premium of ...

Social Issues & SchemesOpen question

Regarding ‘Atal Pension Yojana’, which of the following statements is/are correct? 1. It is a minimum guaranteed pension scheme mainly targeted at unorganiz...

Social Issues & SchemesOpen question

With reference to ‘Stand Up India Scheme’, which of the following statements is/are correct? 1. Its purpose is to promote entrepreneurship among SC/ST and wo...

Social Issues & SchemesOpen question
2016Multi-statement analysis, Factual recall

With reference to ‘Initiative for Nutritional Security through Intensive Millets Promotion’, which of the following statements is/are correct? 1. This init...

Social Issues & SchemesOpen question

With reference to ‘Pradhan Mantri Fasal Bima Yojana’, consider the following statements: 1. Under this scheme, farmers will have to pay a uniform premium of ...

Social Issues & SchemesOpen question

Regarding ‘Atal Pension Yojana’, which of the following statements is/are correct? 1. It is a minimum guaranteed pension scheme mainly targeted at unorganiz...

Social Issues & SchemesOpen question

With reference to ‘Stand Up India Scheme’, which of the following statements is/are correct? 1. Its purpose is to promote entrepreneurship among SC/ST and wo...

Social Issues & SchemesOpen question
2016Multi-statement analysis, Policy measures

With reference to ‘Initiative for Nutritional Security through Intensive Millets Promotion’, which of the following statements is/are correct? 1. This init...

Social Issues & SchemesOpen question

With reference to ‘Pradhan Mantri Fasal Bima Yojana’, consider the following statements: 1. Under this scheme, farmers will have to pay a uniform premium of ...

Social Issues & SchemesOpen question

Regarding ‘Atal Pension Yojana’, which of the following statements is/are correct? 1. It is a minimum guaranteed pension scheme mainly targeted at unorganiz...

Social Issues & SchemesOpen question

With reference to ‘Stand Up India Scheme’, which of the following statements is/are correct? 1. Its purpose is to promote entrepreneurship among SC/ST and wo...

Social Issues & SchemesOpen question
2016Statement-based questions, Factual recall

With reference to ‘Initiative for Nutritional Security through Intensive Millets Promotion’, which of the following statements is/are correct? 1. This init...

Social Issues & SchemesOpen question

With reference to ‘Pradhan Mantri Fasal Bima Yojana’, consider the following statements: 1. Under this scheme, farmers will have to pay a uniform premium of ...

Social Issues & SchemesOpen question

Regarding ‘Atal Pension Yojana’, which of the following statements is/are correct? 1. It is a minimum guaranteed pension scheme mainly targeted at unorganiz...

Social Issues & SchemesOpen question

With reference to ‘Stand Up India Scheme’, which of the following statements is/are correct? 1. Its purpose is to promote entrepreneurship among SC/ST and wo...

Social Issues & SchemesOpen question

Topic timeline

Indian Economy
Prelims 2016· Multi-statement analysis, Factual recall

With reference to ‘Initiative for Nutritional Security through Intensive Millets Promotion’, which of the following statements is/are correct? 1. This init...

Open question

With reference to ‘Pradhan Mantri Fasal Bima Yojana’, consider the following statements: 1. Under this scheme, farmers will have to pay a uniform premium of ...

Open question

Regarding ‘Atal Pension Yojana’, which of the following statements is/are correct? 1. It is a minimum guaranteed pension scheme mainly targeted at unorganiz...

Open question

With reference to ‘Stand Up India Scheme’, which of the following statements is/are correct? 1. Its purpose is to promote entrepreneurship among SC/ST and wo...

Open question
Prelims 2016· Multi-statement analysis, Factual recall

With reference to ‘Initiative for Nutritional Security through Intensive Millets Promotion’, which of the following statements is/are correct? 1. This init...

Open question

With reference to ‘Pradhan Mantri Fasal Bima Yojana’, consider the following statements: 1. Under this scheme, farmers will have to pay a uniform premium of ...

Open question

Regarding ‘Atal Pension Yojana’, which of the following statements is/are correct? 1. It is a minimum guaranteed pension scheme mainly targeted at unorganiz...

Open question

With reference to ‘Stand Up India Scheme’, which of the following statements is/are correct? 1. Its purpose is to promote entrepreneurship among SC/ST and wo...

Open question
Prelims 2016· Multi-statement analysis, Policy measures

With reference to ‘Initiative for Nutritional Security through Intensive Millets Promotion’, which of the following statements is/are correct? 1. This init...

Open question

With reference to ‘Pradhan Mantri Fasal Bima Yojana’, consider the following statements: 1. Under this scheme, farmers will have to pay a uniform premium of ...

Open question

Regarding ‘Atal Pension Yojana’, which of the following statements is/are correct? 1. It is a minimum guaranteed pension scheme mainly targeted at unorganiz...

Open question

With reference to ‘Stand Up India Scheme’, which of the following statements is/are correct? 1. Its purpose is to promote entrepreneurship among SC/ST and wo...

Open question
Prelims 2016· Statement-based questions, Factual recall

With reference to ‘Initiative for Nutritional Security through Intensive Millets Promotion’, which of the following statements is/are correct? 1. This init...

Open question

With reference to ‘Pradhan Mantri Fasal Bima Yojana’, consider the following statements: 1. Under this scheme, farmers will have to pay a uniform premium of ...

Open question

Regarding ‘Atal Pension Yojana’, which of the following statements is/are correct? 1. It is a minimum guaranteed pension scheme mainly targeted at unorganiz...

Open question

With reference to ‘Stand Up India Scheme’, which of the following statements is/are correct? 1. Its purpose is to promote entrepreneurship among SC/ST and wo...

Open question
Prelims 2017· Statement-based questions, Factual recall

Consider the following in respect of ‘National Career Service’: 1. National Career Service is an initiative of the Department of Personnel and Training, Gov...

Open question
Prelims 2018· Multi-statement analysis, Conceptual understanding

With reference to Pradhan Mantri Kaushal Vikas Yojana, consider the following statements 1. It is the flagship scheme of the Ministry of Labour and Employmen...

Open question
Prelims 2021· Multi-statement analysis, Factual recall

With reference to the casual workers employed in India, consider the following statements: 1. All casual workers are entitled for Employees Provident Fund co...

Open question
Prelims 2023· Multi-statement analysis, Policy measures

Consider the following statements in relation to Janani Suraksha Yojana: 1. It is safe motherhood intervention of the State Health Departments. 2. Its object...

Open question
Prelims 2024· Factual recall, Conceptual understanding

With reference to the Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) Yojana, consider the following statements: 1. The entry age group for enrolment in the sc...

Open question

With reference to the 'Pradhan Mantri Surakshit Matritva Abhiyan', consider the following statements: 1. This scheme guarantees a minimum package of antenat...

Open question
Prelims 2024· Multi-statement analysis, Factual recall

With reference to the Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) Yojana, consider the following statements: 1. The entry age group for enrolment in the sc...

Open question

With reference to the 'Pradhan Mantri Surakshit Matritva Abhiyan', consider the following statements: 1. This scheme guarantees a minimum package of antenat...

Open question
Prelims 2026· Multi-statement analysis, Factual recall

Which of the following statements with regard to the persons with disabilities in India is/are correct ? 1. The Rights of Persons with Disabilities Act, an ...

Open question

Which of the following statements with respect to the Revamped Rashtriya Gram Swaraj Abhiyan (RGSA) is/are correct ? 1. The period of its implementation is ...

Open question
Prelims 2026· Multi-statement analysis, Factual recall

Which of the following statements with regard to the persons with disabilities in India is/are correct ? 1. The Rights of Persons with Disabilities Act, an ...

Open question

Which of the following statements with respect to the Revamped Rashtriya Gram Swaraj Abhiyan (RGSA) is/are correct ? 1. The period of its implementation is ...

Open question

22 more applicants approved under PLI scheme for textiles

11 Jun 2026 · The PLI scheme is a government policy offering incentives on incremental sales to boost domestic manufacturing, attract investment, and create employment across strategic sectors like textiles.

Read article

12 years of ‘Make in India’ in 12 metrics — Low and patchy impact on growth, employment & global share

25 Sep 2026 · PLI schemes, launched in 2020-21 across 14 sectors, offer incentives for domestic manufacturing. While attracting significant investment (Rs 2.4 lakh crore) and generating substantial employment (8.5 lakh direct jobs), their impact is highly concentrated in a few key sectors like electronics, solar modules, and pharmaceuticals.

Read article

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Practice writing on this topic

UPSC has asked 12 linked questions on Production Linked Incentive (PLI) Scheme in Mains. Write an answer to one — and get it evaluated.

See Mains PYQsEvaluate an answer

UPSC Prelims PYQs on Production Linked Incentive (PLI) Scheme

Practice official previous year questions asked by UPSC related to this concept.

With reference to ‘Initiative for Nutritional Security through Intensive Millets Promotion’, which of the following statements is/are correct? 1. This init...

2016·Social Issues & Schemes
Solve

Which of the following statements with regard to the persons with disabilities in India is/are correct ? 1. The Rights of Persons with Disabilities Act, an ...

2026·Social Issues & Schemes
Solve

With reference to Pradhan Mantri Kaushal Vikas Yojana, consider the following statements 1. It is the flagship scheme of the Ministry of Labour and Employmen...

2018·Social Issues & Schemes
Solve

Which of the following statements with respect to the Revamped Rashtriya Gram Swaraj Abhiyan (RGSA) is/are correct ? 1. The period of its implementation is ...

2026·Social Issues & Schemes
Solve

Consider the following statements in relation to Janani Suraksha Yojana: 1. It is safe motherhood intervention of the State Health Departments. 2. Its object...

2023·Social Issues & Schemes
Solve

With reference to ‘Pradhan Mantri Fasal Bima Yojana’, consider the following statements: 1. Under this scheme, farmers will have to pay a uniform premium of ...

2016·Social Issues & Schemes
Solve

With reference to the Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) Yojana, consider the following statements: 1. The entry age group for enrolment in the sc...

2024·Social Issues & Schemes
Solve

With reference to the 'Pradhan Mantri Surakshit Matritva Abhiyan', consider the following statements: 1. This scheme guarantees a minimum package of antenat...

2024·Social Issues & Schemes
Solve

With reference to the casual workers employed in India, consider the following statements: 1. All casual workers are entitled for Employees Provident Fund co...

2021·Social Issues & Schemes
Solve

Regarding ‘Atal Pension Yojana’, which of the following statements is/are correct? 1. It is a minimum guaranteed pension scheme mainly targeted at unorganiz...

2016·Social Issues & Schemes
Solve

Consider the following in respect of ‘National Career Service’: 1. National Career Service is an initiative of the Department of Personnel and Training, Gov...

2017·Social Issues & Schemes
Solve

With reference to ‘Stand Up India Scheme’, which of the following statements is/are correct? 1. Its purpose is to promote entrepreneurship among SC/ST and wo...

2016·Social Issues & Schemes
Solve

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