**Executive Summary**
This document provides the answer from the Minister of State for Micro, Small and Medium Enterprises to the Lok Sabha Unstarred Question No. 2285 regarding the Production Linked Incentive (PLI) scheme and measures to improve credit access and reduce regulatory bottlenecks for domestic manufacturing. The answer outlines the PLI scheme's implementation, its impact on production, employment, and exports, and measures taken to facilitate the disbursement of incentive claims. The question was to be answered on 12.02.2026.
**Key Points / Main Content**
*Production Linked Incentive (PLI) Scheme:*
* The government has notified PLI for 14 key sectors.
* Objective: incentivising domestic manufacturing.
* Outlay: Rs 1.97 lakh crore.
* Designed to encourage incremental production, attract investments, improve scale and enhance competitiveness.
* The scheme links incentives to actual production and sales.
* Provides a policy framework that supports capacity expansion and technology adoption.
* Covers sectors including electronics and other manufacturing segments.
*Impact of Investment:*
* An actual investment of Rs.2 lakh crore has been realized.
* Resulting in incremental production/sales of over Rs.18.70 lakh crore.
* Employment generation of over 12.60 lakhs.
* Exports of Rs 8.20 lakh crore.
*Facilitating Incentive Claim Disbursement:*
* Ministries/Departments have taken steps to address and facilitate the disbursement of incentive claims.
* Provision for quarterly disbursement of claims.
* Effective coordination between State Governments and Ministries to fast-track regulatory approvals, reducing project commissioning time.
* Standard Operating Procedures (SOPs) developed by Ministries/Departments to reduce compliances for claiming incentives.
* Complete online claim process and grievance redressal mechanism in the portal for timely disbursement.
**Impact Analysis**
**Stakeholder: Domestic Manufacturers in the 14 Key Sectors**
*Impact:* Increased incentives through the PLI scheme, improved access to credit, reduced regulatory bottlenecks, encouragement of incremental production, attraction of investments, improved scale and competitiveness, and support for capacity expansion and technology adoption.
*Action Required:* Understand the provisions of the PLI scheme, align production and sales strategies to maximize incentives, and utilize the online claim process and grievance redressal mechanism for timely disbursement of claims.
**Stakeholder: Ministries/Departments of the Government**
*Impact:* Required to implement the PLI scheme effectively, coordinate with State Governments to fast-track regulatory approvals, develop and implement SOPs to reduce compliance burden for manufacturers claiming incentives, and ensure timely disbursement of incentive claims.
*Action Required:* Develop and implement efficient processes for evaluating and disbursing incentive claims, ensure effective coordination with State Governments, and actively monitor the impact of the PLI scheme on domestic manufacturing.
**Stakeholder: State Governments**
*Impact:* Required to coordinate with Ministries/Departments to fast-track regulatory approvals for manufacturing projects.
*Action Required:* Collaborate with central government entities to streamline regulatory processes and support the implementation of the PLI scheme within their respective jurisdictions.
Key Entities Referenced
Production Linked Incentive (PLI): A scheme to incentivize domestic manufacturing across 14 key sectors.
Ministry of Micro, Small and Medium Enterprises: The ministry responsible for questions and answers regarding credit access and incentives for domestic manufacturing.
GOVERNMENT OF INDIA
MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES
LOK SABHA
UNSTARRED QUESTION NO. 2285
TO BE ANSWERED ON: 12.02.2026
CREDIT UNDER PLI SCHEME FOR DOMESTIC MANUFACTURING
2285. SHRI JAGADISH SHETTAR:
Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:
(a) whether any measures are being contemplated to improve access to credit, reduce regulatory
bottlenecks and provide incentives {e.g., through Production Linked Incentive (PLI) schemes} for
domestic manufacturing, especially in sectors like toys, electronics and defence; and
(b) if so, the details thereof?
ANSWER
MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES
(SUSHRI SHOBHA KARANDLAJE)
(a) to (b): The Government has notified Production Linked Incentive (PLI) for 14 key sectors
with the objective of incentivising domestic manufacturing with an outlay of Rs 1.97 lakh crore.
The schemes are designed to encourage incremental production, attract investments, improve scale
and enhance competitiveness of domestic manufacturing. By linking incentives to actual production
and sales, the PLI scheme provides a policy framework that supports the capacity expansion and
technology adoption in identified sectors including electronics and other manufacturing segments
covered under the notified schemes.
An actual investment of Rs.2 lakh crore has been realized resulting in incremental production/sales
of over Rs.18.70 lakh crore, employment generation of over 12.60 lakhs and exports of Rs 8.20
lakh crore.
In order to address and facilitate the disbursement of incentive claims, the Ministries/Departments
have undertaken a number of steps which include the provision for quarterly disbursement of
claims. Further, effective coordination between the State Governments and Ministries to fast-track
regulatory approvals has reduced the project commissioning time. The Standard Operating
Procedures developed by the respective Ministries/ Departments have reduced the compliances for
claiming incentives. Complete online claim process along with the grievance redressal mechanism
in the portal has also helped in timely disbursement of the claims.
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