Production Linked Incentive (PLI) Scheme Explained: India’s big bet on Industry Incentives

May 30, 2025

India’s Production Linked Incentive (PLI) scheme is transforming the nation into a global manufacturing powerhouse, with Foxconn’s $1.5 billion investment set to boost iPhone production for the U.S. market, as announced by Apple CEO Tim Cook in Q1 2025. Launched in 2020 under the “Self-Reliant India” vision, the PLI scheme offers 4–6% subsidies across 14 sectors, including electronics, pharmaceuticals, and telecom, attracting giants like Apple and Samsung. By November 2024, it approved 764 applications, generating $18.72 billion in investments and $162.84 billion in production, with mobile phone manufacturing soaring from ₹2 lakh crore to over ₹5 lakh crore. Aligned with the “China+1” strategy, India’s cost advantages and policy support position it to capture a significant share of the $1.5 trillion global electronics market, creating jobs and driving exports.