India PLI Scheme 2026: How to Calculate Your Disbursement Across 14 Sectors

The PLI scheme is India's flagship federal manufacturing incentive — pay-for-performance, paid out only on incremental sales above a defined base year, capped at investment thresholds. Total committed outlay across 14 sectors: ₹1.97 lakh cr (~$24B).

How PLI disbursement is calculated: Year-N annual incentive = (Year-N net sales − Base-year sales) × incentive rate. Each sector has its own incentive rate (typically 4-7%) and its own minimum investment threshold + minimum incremental sales criterion. Disbursement happens annually after audit and DPIIT verification.

Sectoral outlay (₹ cr): Semiconductors 76,000 · Electronics 76,000 · Auto + Auto Components 25,938 · Solar PV 24,000 · Pharma 15,000 · Telecom 12,195 · Food Processing 10,900 · Textiles 10,683 · Specialty Steel 6,322 · White Goods 6,238 · IT Hardware 17,000 · Drones 120 · Advanced Chemistry Cell 18,100 · High-Efficiency Solar Modules subset.

Sectors still accepting applications (as of early 2026): IT Hardware Round 2, Speciality Steel Round 2, Pharmaceutical APIs Round 3 — check DPIIT and respective ministry portals for current windows.

Common pitfalls: (1) Base-year sales misclassification — get this right, it determines all 5 years of incentives; (2) Investment phasing — failing to hit committed investment in early years jeopardises later disbursement; (3) Net domestic value addition (NDVA) audit — required for some sectors; missing supply-chain documentation delays disbursement by 12+ months.

Use AJG's India PLI Calculator at tools/india-pli-calculator.php to model your specific disbursement.