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Keeping in view India’s vision of becoming ‘Atmanirbhar’ and to enhance India’s Manufacturing Capabilities and Exports, an outlay of INR 1.97 lakh crore has been announced
What is the PLI Scheme?
- Production-Linked Incentive or PLI scheme is a scheme that aims to give companies incentives on incremental sales from products manufactured in domestic units.
- The scheme invites foreign companies to set up units in India, however, it also aims to encourage local companies to set up or expand existing manufacturing units and also to generate more employment and cut down the country's reliance on imports from other countries
Purpose
- To protect identified product areas
- To introduce non-tariff measures that make imports more expensive.
- To acknowledge the relevance of exports in overall growth strategy but focus more on the domestic market
- To promote manufacturing at home by offering production incentives and encourage investments both from within and outside.
PLI schemes for 13 key sectors
- Mobile Manufacturing and Specified Electronic Components,
- Critical Key Starting materials/Drug Intermediaries & Active Pharmaceutical Ingredients,
- Manufacturing of Medical Devices
- Automobiles and Auto Components
- Pharmaceuticals Drugs
- Specialty Steel
- Telecom & Networking Products
- Electronic/Technology Products
- White Goods (ACs and LEDs)
- Food Products
- Textile Products: MMF segment and technical textiles
- High efficiency solar PV modules, and
- Advanced Chemistry Cell (ACC) Battery.
Highlights
- The PLI schemes will be implemented by the concerned Ministries/ Departments and will be within the overall financial limits prescribed.
- The PLI Schemes are expected to enable the setting up of a widespread supplier base for the global champions established under the scheme.
- It will help bring scale and size in key sectors and create and nurture global champions. All the units put together would help India to generate massive primary and secondary employment opportunities.
Source: PIB
