ECMS · RDI Fund · Central + State stacking
Central Government Subsidy Schemes for Industry
Central schemes can add real value to your project, on top of any state subsidy. But each has its own sector, condition, and window. BizAstra’s CA-led team maps your project to the right central schemes, checks the fine print, and files them for you, so you claim the full benefit.
Reviewed by, CA, BizAstra Pvt Ltd. BizAstra has advised 500+ industrial clients on central and state incentives across India. Last updated: July 2026.
Get Free Eligibility Check
Talk to a CA Advisor
Free. No obligation. We reply within 24 hours.
PLI Scheme Approval
ECMS Scheme Approval
RDI Fund of project cost
Clients advised
The Basics
What Are Central Government Schemes?
Central government schemes are national incentives from the Government of India. They reward businesses that produce more, invest more, or build new capacity in priority sectors. Unlike a state subsidy, which is tied to where you set up, a central scheme is tied to what you make and how much you grow.
For industry, the central schemes that matter include the Production Linked Incentive (PLI) scheme, the Electronics Component Manufacturing Scheme (ECMS), the Research, Development and Innovation (RDI) Fund, and central food processing support. This page covers ECMS and the RDI Fund in depth, and BizAstra advises on the others as part of your eligibility check.
Answer capsule: Central schemes reward production, investment, and R&D; state schemes reward capital spend. Many projects qualify for both. BizAstra supports ECMS and the RDI Fund in depth and advises on PLI and food processing schemes.
Your Options
Which Central Schemes Can Your Business Claim?
Which scheme fits depends on your sector and your plan. BizAstra covers ECMS and the RDI Fund in depth in the sections below, and advises on the wider set of central schemes too.
PLI
A turnover or capital incentive for makers of electronic components and sub-assemblies. Builds the parts supply chain. Full detail below.
ECMS
Low-cost loans covering up to half of an R&D project, for new technology at TRL-4 and above. Full detail below.
RDI
The flagship central production-incentive scheme for manufacturers, across many sectors. We check eligibility and file claims.
Food Processing
Central capital support for food processing units through the Ministry of Food Processing Industries. We check your eligibility and map it to any state subsidy.
Want scheme-specific figures for PLI or food processing on this page? BizAstra will publish them from the official scheme memos so the numbers stay verified.
Get a free eligibility check
Funding
Central Government Schemes
| Sr. No. | Scheme | Benefit | Applicable To Products |
|---|---|---|---|
| 1 | Electronics Component Manufacturing Scheme (ECMS) |
| PCBs, passive components, Li-ion cells, connectors, display/camera modules |
| 2 | Strengthening of Pharmaceutical Industry (SPI) |
| Pharma MSMEs & clusters — common facilities, tech upgradation, promotion |
| 3 | India Semiconductor Mission 2.0 (ISM 2.0) |
| Semiconductor fabs, ATMP/OSAT, display fabs, equipment/materials, chip design IP |
| 4 | MOFPI Schemes (PMKSY — Cold Chain, Agro-Processing Clusters, Food Processing/Preservation Units, Food Testing Labs, Operation Greens) | Credit-linked capital subsidy of 35% of eligible project cost (50% in difficult/hilly/NE areas), varying by component | Food processing & preservation infrastructure across multiple component schemes |
| 5 | PLI — Mobile Phone Manufacturing Scheme (MPMS) |
| Mobile phone OEMs & component makers |
| 6 | PLI — Speciality Steel (1.0 + 1.1 + 1.2) | 4–12% (1.0) to 4–15% (1.2) incentive on incremental sales, depending on product category and year, for 5 years | Coated, alloy, electrical, high-strength, tool & die steel |
| 7 | PLI — Textiles (MMF & Technical Textiles) | 5–15% incentive on incremental turnover, tapering by year — precise year-wise slab not independently confirmed; capped at 2x investment + 10% turnover in Year 1 | MMF fabric/apparel, technical textiles |
| 8 | PLI — Automobiles & Auto Components | Up to 18% incentive on determined sales value of AAT products, +2% for high cumulative turnover, +5% for certain advanced components, over 5 years | BEVs, hydrogen fuel cell vehicles, ≥50% DVA components |
| 9 | PLI — Pharmaceuticals (Drug Formulations) | Category 1 & 2 (biopharma, complex generics): 10% incentive Yrs 1–4, tapering to 8%/6% in Yrs 5–6; Category 3: 5% flat — 6 years | Patented drugs, generics, biopharmaceuticals |
| 10 | PLI — Food Processing | Manufacturing-incentive rate not independently confirmed; branding/marketing component reimburses 50% of overseas branding spend, capped at 3% of sales or ₹50 cr/year | RTE, marine, horticulture, organic, millet products |
| 11 | PLI — IT Hardware 2.0 | Average incentive of ~5% for localisation of key components, on net incremental sales, over 6 years | Laptops, tablets, PCs, servers |
| 12 | PLI — Medical Devices | Flat 5% incentive on incremental sales across 4 target segments — 5 years | Cancer care, radiology, anaesthesia, diagnostics, implants |
| 13 | PLI — White Goods (ACs & LEDs) | 4–6% incentive on incremental sales, 5 years | AC and LED light manufacturers |
| 14 | PLI — High-Efficiency Solar PV Modules | Incentive rate set via competitive bidding per tranche, tied to module efficiency & local value addition, disbursed over 5 years post-commissioning | Integrated solar PV module manufacturers |
| 15 | PLI — Telecom & Networking Products | 7% down to 4% for MSMEs (min ₹10 cr investment); 6% down to 4% for non-MSMEs (min ₹100 cr), +1% for design-led manufacturing — 5 years | 5G equipment, base stations, routers, IoT devices |
| 16 | Design Linked Incentive (DLI) Scheme | Deployment Linked Incentive of 4–6% of net sales for 5 years, plus design-expenditure reimbursement up to ₹15 cr per application | IC/chipset/SoC design — startups & MSMEs |
| 17 | RDI Scheme / RDIF | Long-tenor loans at 3–4% interest over 12–15 years, up to 50% of project cost; equity participation up to 25% also available, especially for startups | Advanced manufacturing, semiconductors, EV, biopharma, AI, defence, deep tech |
| 18 | Coal/Lignite Gasification Scheme | Competitive-bid-linked incentive of up to 20% of plant & machinery cost, capped at ₹5,000 cr/project and ₹12,000 cr/corporate group | Syngas, methanol, ammonia, SNG, urea, DRI steel |
| 19 | Rare Earth Permanent Magnet (REPM) Scheme | ₹750 cr capital subsidy + ₹6,450 cr sales-linked incentive, split across 5 beneficiaries, plus assured raw-material supply from IREL | Sintered NdFeB magnets — EVs, wind turbines, defence, electronics |
| 20 | BHAVYA Scheme (Industrial Parks) | Equity supports up to ₹1 crore/acre to the project SPV, linked to land value and milestone achievement | 100 plug-and-play industrial parks, all sectors |
| 21 | Credit Guarantee Fund Trust for MSEs (CGTMSE) | Collateral-free credit guarantee covers up to ₹10 cr (₹20 cr for DPIIT startups via CGSS), covering 75–85% of the loan | All micro & small manufacturing enterprises |
| 22 | PM Employment Generation Programme (PMEGP) | Capital subsidy of 15–35% of project cost, balance financed as bank term loan | New micro manufacturing units |
Scheme In Depth
Electronics Component Manufacturing Scheme (ECMS)
ECMS supports companies that make electronic components, sub-assemblies, and the equipment behind them. The goal is to build India’s own parts supply chain, so finished-goods makers do not have to import as much. Only companies and LLPs can apply, and both new (greenfield) and expansion (brownfield) projects count.
The benefit depends on your target segment:
- Turnover-linked incentive: 1% to 10% on your incremental sales over the FY 2024-25 base year, for sub-assemblies and bare components (segments A and B).
- Capex incentive: 25% of your eligible capital expenditure, for the supply-chain and capital-equipment segment (segment D).
- Hybrid incentive: a mix of the turnover and capex incentives, for selected bare components (segment C).
Answer capsule: ECMS pays a 1% to 10% turnover-linked incentive, a 25% capex incentive, or a hybrid, by segment, for companies and LLPs making electronic components. The base year is FY 2024-25 and the scheme runs from FY 2025-26 to FY 2031-32.
ECMS eligibility and timelines
- Eligible investment must be made on or after 8 April 2025.
- Greenfield and brownfield investment both qualify.
- No insolvency or winding-up proceedings admitted against the applicant in the National Company Law Tribunal (NCLT).
- Application window per the scheme details: target segments A to C ran 1 May 2025 to 31 July 2025; segment D is open for two years from 1 May 2025.
Research, Development and Innovation (RDI) Fund
The RDI Fund is a ₹1,00,000 crore central fund approved by the Union Cabinet on 1 July 2025. It is built to push private research and help companies turn advanced technology into real products. It is implemented under the Anusandhan National Research Foundation, with agencies such as the Technology Development Board acting as fund managers. It works mostly through long-term, low-cost loans rather than one-time grants.
How much: up to 50% of your total project cost. You or your investors bring the other 50%.
Cost of funds: about 3% to 4% concessional interest, set by project appraisal.
Tenure: 12 to 15 years, including a moratorium period, with milestone-based release of funds.
Who can apply: companies, LLPs, partnerships, and DPIIT-recognised startups registered in India.
What it funds: technologies at TRL-4 and above, meaning ready for prototype validation and scale-up.
Funding modes: loan, loan plus equity, or equity participation in strategic cases. Up to 25% of the assistance may be taken as equity, and up to 20% of the loan can later convert to equity.
Priority sectors are energy security and climate technology, deep tech, artificial intelligence, biotechnology and medical technology, and the digital economy including digital agriculture. The fund does not give direct grants, short-term working capital, support for pure commercialization without an R&D component, or funding for technologies below the TRL-4 stage.
Answer capsule: The RDI Fund covers up to 50% of an R&D project cost as a 3% to 4% concessional loan over 12 to 15 years, for TRL-4-and-above technology in clean energy, deep tech, AI, biotech, and digital economy. Corpus is ₹1,00,000 crore over 6 years.
Headline maximums : The bases differ: ECMS turnover is on incremental sales, ECMS capex on eligible capital expenditure, and the RDI Fund on total R&D project cost. Source: BizAstra ECMS and RDI Fund info memos.
The Real Edge
Can You Claim Central and State Subsidy Together?
Yes, in most cases. This is where the biggest gains hide. A central scheme like ECMS and PLI rewards your production or turnover. A state scheme, like the Maharashtra or Madhya Pradesh subsidy, rewards your capital investment. Because they sit on different benefit heads, one project can often claim both.
Answer capsule: Central schemes reward production and R&D; state schemes reward capital investment. They sit on different benefit heads, so a single project can usually stack a central incentive with a state subsidy, subject to each policy’s rules.
Worked example (illustration)
Say you set up a new electronic-components unit in Maharashtra. You invest in fixed capital and expect incremental annual sales that qualify under ECMS.
State side (Maharashtra)
An SGST-based industrial promotion subsidy on your fixed capital investment, disbursed over the eligibility period.
Central side (ECMS)
Capital subsidy of 25%
The two do not cancel out. You claim the state capital subsidy and the central production incentive on the same project. BizAstra runs this stacking analysis for every engagement to find each legal combination. See how the state side works for Maharashtra industrial subsidy schemes and Madhya Pradesh industrial subsidy schemes.
Get a free central-plus-state check
Eligibility
Who Is Eligible for Central Government Schemes?
Each scheme sets its own bar, but the common threads are simple.
Entity type
Most schemes need a company or LLP registered in India. The RDI Fund also allows partnerships and DPIIT-recognised startups.
Sector fit
Your product must fall inside the scheme’s notified scope, such as the ECMS component segments or the RDI Fund priority sectors.
Investment and output
You usually must meet the scheme conditions and show incremental sales & production, project cost, or R&D spend, with investment made on or after the cut-off date.
Clean standing
No insolvency or winding-up proceedings admitted in the NCLT, as required under ECMS.
How To Apply
How Do You Apply for a Central Scheme?
The steps are similar across schemes, even though the portals differ.
Match your project to a scheme
Map your sector, investment, and expected extra/incremental sales or R&D spend to the central schemes and their conditions.
Confirm eligibility and entity type
Check the entity, investment, and standing conditions. Fix any gap, such as registering an LLP or company, first.
Prepare the documents and project report
Assemble the detailed project report, financials, and the proofs each portal asks for.
Apply on the official portal in the window
Register and submit on the scheme's portal inside the open application period.
Track approval and claim disbursement
Follow the appraisal, secure the approval, then file claims to receive the incentive or drawdown.
Let BizAstra file it for you
Why BizAstra
Why Choose BizAstra for Central Schemes?
CA-Led Scheme Mapping
A chartered-accountant team reads the notified guidelines, not summaries, and matches your project to every scheme you qualify for.
Central Plus State Stacking
We find the legal combinations of central and state benefits, so you do not leave money on the table.
End-to-End Filing
From the project report to the portal submission to the disbursement claims, we handle the paperwork.
Verified, Current Facts
We track scheme conditions and windows, so your plan is built on today's policy, not last year's.
Find Every Central Scheme You Qualify For
Tell us your sector, your investment, and your plans. We will map your central schemes, stack them with your state subsidy, and file the claims.
Common Questions
Central Government Schemes: Common Questions Answered
What are central government subsidy schemes?
They are national incentives from the Government of India that reward what your business produces or invests in. For industry they include the PLI scheme for 14 sectors, the Electronics Component Manufacturing Scheme (ECMS), the Research, Development and Innovation (RDI) Fund, and food processing schemes. They run alongside state subsidies, so many projects can claim both. BizAstra supports ECMS and the RDI Fund in depth and advises on the others.
What is ECMS and what do you get?
ECMS supports makers of electronic components and sub-assemblies. Only companies and LLPs can apply, and greenfield and brownfield projects both qualify. The benefit is a 1% to 10% turnover-linked incentive on incremental sales over the FY 2024-25 base year, a 25% capital expenditure incentive for the supply-chain and capital-equipment segment, or a hybrid of both, depending on your target segment.
When can you apply for ECMS?
Per the scheme details, applications for target segments A to C ran from 1 May 2025 to 31 July 2025, and the supply-chain and capital-equipment segment (D) is open for two years from 1 May 2025. The scheme runs from FY 2025-26 to FY 2031-32. Eligible investment must be made on or after 8 April 2025, and the applicant must have no insolvency or winding-up proceedings in the NCLT.
What is the RDI Fund?
The Research, Development and Innovation Fund is a ₹1,00,000 crore central fund approved on 1 July 2025 and implemented under the Anusandhan National Research Foundation. It gives concessional loans of about 3% to 4%, covering up to 50% of an R&D project cost over 12 to 15 years, for TRL-4-and-above technology in clean energy, deep tech, AI, biotech, and digital economy. Companies, LLPs, partnerships, and DPIIT-recognised startups can apply.
Can I claim a central scheme and a state subsidy together?
Usually yes. Central schemes reward production, turnover, or R&D, while state schemes reward capital investment. Because they sit on different benefit heads, a single project can often claim both, subject to each policy’s rules. BizAstra runs a stacking analysis to find every legal combination.
Do you advise on the PLI scheme and food processing schemes?
Yes. BizAstra advises on the PLI schemes for all sectors such as food, pharma, electronics, automobile and on central food processing support, alongside our in-depth ECMS and RDI Fund service. We check your eligibility and file your applications. For a full breakdown of PLI, see our PLI guide.
How do I find which central scheme my business qualifies for?
Start with your sector, your planned investment, and your expected incremental sales or R&D spend, then match them to the central schemes and check the state subsidy your location earns. BizAstra does this mapping in a free eligibility check and files the applications end to end.