Karnataka Production Linked Incentive (Industrial Policy 2025-30)

Under Karnataka's Industrial Policy 2025-30, medium, large, mega and ultra-mega manufacturers can take 1% to 2.5% of net sales turnover for 7 years instead of the capital subsidy.

Karnataka's Industrial Policy 2025-30 lets a manufacturing enterprise choose its base subsidy: a capital subsidy, or a Production Linked Incentive (PLI) paid on net sales turnover. The policy pitches the PLI option at high revenue-generating industries.

The incentive (by zone)

Who can take it Medium, large, mega and ultra-mega manufacturing enterprises in Karnataka that opt for PLI instead of the capital subsidy as their base subsidy. Your zone depends on the district where you invest, as classified in the policy. Boosters in the policy (for example for women's participation in the workforce) can raise the PLI rate.

How to apply Apply through Karnataka's single window for investment approvals (Invest Karnataka). The PLI is an alternative to the capital subsidy, so choose your base subsidy when you apply.