An incentive is not a strategy.
India’s PLI schemes can change the economics of manufacturing, components and localisation, but they do not decide whether a UK firm should export, partner, license or invest.
What changed
India continues to use Production Linked Incentive schemes to deepen domestic manufacturing and component ecosystems. Official DPIIT material for white goods, for example, sets out incentives tied to incremental sales, investment thresholds and component manufacturing rather than finished-goods assembly alone.
The decision is entry mode
A UK board should not ask “is there a PLI scheme?” first. It should ask whether the firm has an ownership advantage worth bringing, whether India offers a location advantage for this product and whether the activity should be internalised or handled through a partner.
Use OLI without teaching it
Ownership means the capability the firm controls. Location means the India-specific reason to place activity there. Internalisation means whether control is worth the cost and complexity. The model is useful because it stops incentive headlines from pulling the decision out of shape.
The worked example
A UK component manufacturer may find that India is attractive for localisation and customer proximity, but still choose a technical partnership if direct investment would create too much management load or supplier-development risk.
Boundary. This is a commercial framework, not customs, tax, legal or financial advice. A company-specific position needs current official guidance, product codes, supplier evidence, customer terms and specialist review.
