The scheme shall extend an incentive of 4% to 6% on incremental sales (over base year) of goods manufactured in India and covered under target segments, to eligible companies, for a period of five (5) years subsequent to the base year as defined. 

PLIs are basically financial inducements for businesses to amplify their output. They could come in the form of tax rebates, lowered import and export duties, or easier land acquisition norms.

Keeping in view India's vision of becoming 'Atmanirbhar', Production Linked Incentive (PLI) Schemes for 14 key sectors have been announced with an outlay of Rs. 1.97 lakh crore (over US$26 billion) to enhance India's Manufacturing capabilities and Exports.

The 14 sectors are: (i) Mobile Manufacturing and Specified Electronic Components, (ii) Critical Key Starting Materials/Drug Intermediaries & Active Pharmaceutical Ingredients, (iii) Manufacturing of Medical Devices (iv) Automobiles and Auto Components, (v) Pharmaceuticals Drugs, (vi) Specialty Steel, (vii) Telecom & Networking Products, (viii) Electronic/Technology Products, (ix) White Goods (ACs and LEDs), (x) Food Products, (xi) Textile Products: MMF segment and technical textiles, (xii) High efficiency solar PV modules, (xiii) Advanced Chemistry Cell (ACC) Battery, and (xiv) Drones and Drone Components.

The purpose of the PLI Schemes is to attract investments in key sectors and cutting-edge technology; ensure efficiency and bring economies of size and scale in the manufacturing sector and make Indian companies and manufacturers globally competitive.

These schemes have the potential of significantly boosting production, employment and economic growth over the next five years or so.

PLI Schemes for all 14 Sectors have been notified by the concerned Ministries/ Departments after due approval. These Schemes are in various stages of implementation by the implementing Ministries/ Departments.

In May 2023, the Cabinet approved a renewed Product-Linked Incentive (PLI) scheme for IT hardware worth Rs 17,000 crore with a six-year tenure. It aimed at boosting the domestic manufacturing of laptops, tablets, all-in-one PCs, servers, and ultra-small form factor devices.

It is anticipated to stimulate incremental production worth Rs 3.35 lakh crore and create 2 lakh employment opportunities. The current version also raises the basic incentive level to over 5%.

At present, as many as 27 companies have been approved for the PLI scheme for IT hardware. Twenty-three of these companies are ready to start manufacturing on day zero and rest four companies will start within 90 days. These 27 companies will lead to Rs 3,000 crore, direct employment of 50,000, and indirect employment of 1,50,000.

The companies that have been approved include Dell, Foxconn, HP, Lenovo, Flextronics, VVDL, Rising Stars Hi-Tech, India Sales, Padget Electronics, SOJO, VVDN, Goodworth Electronics, Neolync Tele Communications, Syrma SGS, Bhagwati Products, Netweb Technologies, Genus Electrotech, Sahasra, Hangsine, Riot Labz, Smile, Mega Networks, Plumage Solutions, HLBS Tech, Panache Digilife, RDP Workstations, Kaynes, INP Technologies, Optiemus, ITI, Sancraft.