Manufacturing central subsidy
Central government subsidies for Indian manufacturers
Central government subsidies are financial assistance programmes designed to stimulate manufacturing, upgrade technology and boost competitiveness. Here are the key central schemes available for your business.
3 schemes
covered in this guide
Up to 15%
capital subsidy under CLCSS
MSMEs + large
all company sizes eligible
Central schemes
1
PLI Scheme — Production Linked Incentive
Large industry
Incentives of ~10% on additional production above a base threshold — across multiple sectors
The Government of India runs PLI schemes across various sectors to boost local manufacturing — including semiconductors, electronics design, medical devices and electric vehicles. Incentives are provided on incremental production achieved above a defined base year.
Example — If the base EV production for FY 2021–22 was 1,00,000 units and production for FY 2022–23 was 1,30,000 units, the incentive at 10% is payable on the additional 30,000 units × 10% of production cost.
Sectors covered
Semiconductors, electronics, EVs, medical devices and more
Incentive model
~10% on additional production above base year output
Eligibility
Companies achieving incremental production in notified sectors
Period
Multi-year incentive linked to sustained production growth
PLI incentivises you to produce more — the higher your incremental production above the base, the greater your subsidy benefit.
2
Central Credit Linked Subsidy (CCLS)
All companies
Subsidy credited directly to your bank loan — reducing your repayment burden from day one
A Central Credit Linked Subsidy is a government incentive where the subsidy is linked to a bank loan taken for your project rather than being provided upfront. You first secure a loan from a bank or financial institution. Based on the eligible scheme, the government then credits a subsidy on a portion of the project cost directly to your loan account — reducing your outstanding principal.
Reduces loan burden
Subsidy lowers the principal amount to be repaid
Improves feasibility
Makes investments more financially viable
Enables faster growth
Access larger projects with lower effective cost
Government-backed
Benefit through formal bank financing channels
CCLS is a government subsidy that directly reduces the cost of your business loan — you repay less, faster.
3
Credit Linked Capital Subsidy Scheme (CLCSS)
MSMEs
Capital subsidy for MSMEs upgrading plant, machinery and technology — credited to your loan account
CLCSS is a Government of India initiative helping MSMEs upgrade outdated equipment that affects productivity, quality and competitiveness. The scheme provides a capital subsidy on eligible machinery and technology upgrades — routed through bank finance for structured, accountable funding.
Technology upgradation
Enables MSMEs to adopt modern and efficient machinery
Reduces capital cost
Subsidy lowers the effective cost of plant & machinery
Improves competitiveness
Better technology leads to higher productivity and quality
Credit-linked advantage
Subsidy routed through bank finance for structured funding
Who can benefit
MSME manufacturing units Businesses planning modernization Expansion projects Efficiency improvement drives
CLCSS helps MSMEs upgrade machinery at a lower cost by providing a subsidy linked to their bank loan — scale faster, compete stronger.
Want to know which central scheme applies to your business?
Book a consultation — we will assess your eligibility and calculate your exact subsidy benefit
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