Seed Program 2026

This government scheme offers financial incentives to boost large-scale electronics manufacturing in India, aiming to attract significant Read More... investments and increase domestic production. Read less

Details

In a move to make India a global manufacturing hub for electronics, the Ministry of Electronics and Information Technology (MeitY) has introduced the Production Linked Incentive (PLI) Scheme for Large Scale Electronics Manufacturing. This scheme is designed to encourage companies to produce more goods in India and boost sales, offering financial rewards for their performance.

What is the PLI Scheme for Large Scale Electronics Manufacturing?

Simply put, this scheme rewards companies that increase their production and sales of electronics manufactured within India. The incentives are directly linked to how much incremental production and sales a company achieves over a set base year. This means you only get benefits after you've actually produced and sold more goods, encouraging real growth and investment.

Who is this Scheme For?

The scheme is targeted at companies that are actively involved in manufacturing under specific identified electronic product segments. To qualify, companies need to meet certain investment and production targets. It's designed for manufacturers looking to expand their capacity and production in India, thereby contributing to the nation's industrial strength.

Why is This Scheme Important?

The PLI scheme is a crucial step towards building a robust electronics manufacturing ecosystem in India. By incentivizing increased production and sales, it aims to attract substantial domestic and foreign investment. This not only helps in reducing our reliance on imports but also strengthens India's manufacturing base, creating jobs and boosting economic growth.

Objective

This government scheme offers financial incentives to boost large-scale electronics manufacturing in India, aiming to attract significant investments and increase domestic production.

Benefits

Free Seed Distribution:Seed packets containing seeds of bottle gourd, ladyfinger, beans, bitter gourd, ridge gourd, spinach, and cowpea worth ₹50/- are provided free of cost to eligible beneficiaries.

Sources and references

Guidelines

Who Can Apply?

You must be a company manufacturing products within the specified target segments.
Your company needs to meet defined qualification criteria as per the scheme rules.
Your consolidated global manufacturing revenue in the relevant segment for the base year must be above a set threshold (including group companies if applicable).
You must satisfy minimum requirements for incremental investment and incremental sales of manufactured goods compared to the base year.
Meeting the required annual threshold criteria for incremental investment and sales is essential each year to remain eligible for incentives in that year.
If you don't meet the criteria in a specific year, you won't get incentives for that year, but you can still be eligible in later years.
Incremental sales of manufactured goods over the base year are the basis for eligibility, regardless of invoice value.
Only sales of manufactured goods within the target segments are considered for evaluation.
Being eligible for this scheme doesn't stop you from being eligible for other government schemes, and vice versa.

How to Apply

Applications are handled by a designated Project Management Agency (PMA). The process involves submitting an application, followed by verification of claims and monitoring of the implementation. Companies need to meet specified investment, production, and sales thresholds. The scheme ensures a structured approval mechanism to maintain transparency and guarantee that incentives are granted based on verified performance.

For specific application links and details, please refer to the official notification from the Ministry of Electronics and Information Technology (MeitY).

Documents You Might Need

Certificate of Incorporation
Company Identification Number (CIN) details
Audited financial statements
Proof of global manufacturing revenue for the base year
Details of incremental investment made
Details of incremental sales achieved
Detailed Project Report (DPR)
Board resolution or authorization letter
Declaration of eligibility
Any other documents as requested by the authorities

FAQ’s

What is the main goal of this Production Linked Incentive Scheme?

The primary goal is to boost large-scale electronics manufacturing in India by encouraging investments, increasing domestic production volumes, and strengthening the entire electronics value chain.

Which specific product categories fall under this PLI scheme?

The scheme mainly covers mobile phones and certain electronic components. It also includes units for electronic assembly, testing, marking, and packaging.

How are incentives calculated or provided under this scheme?

The incentives are provided based on the increase in sales of manufactured goods recorded over the base financial year.

What is considered the 'base year' for this scheme?

The base year is the specific financial year mentioned in the scheme's guidelines, which serves as the reference point for calculating any increases in sales and investment.

What are the eligibility criteria for companies manufacturing mobile phones?

Eligibility is based on global manufacturing revenue thresholds in the base year, which differ for high-value phones and domestic companies.

What does 'incremental investment' mean in this context?

Incremental investment refers to any additional capital invested by the company during the scheme's duration, beyond the investment made in the base year.

Do I need to meet the eligibility criteria every single year?

Yes, to receive incentives for any given year, companies must meet the annual threshold requirements for both incremental investment and sales for that specific year.

Can my company be part of other government schemes while using this PLI scheme?

Absolutely. Your eligibility for this scheme does not prevent you from participating in or benefiting from any other government schemes, and vice versa.

What is the function of the Project Management Agency (PMA)?

The PMA is responsible for managing the application process, verifying claims submitted by companies, and overseeing the overall implementation of the scheme.

For how long will this scheme provide incentives?

The scheme offers incentives for a set period, typically up to 5 years, starting from the applicable base year period as outlined in the scheme's structure.