Objective of Production Linked Incentive (PLI) Scheme

Production Linked Incentive Scheme:

The government made a 1.97 trillion rupees corpus to facilitate this scheme for various sectors and an additional allocation of rupees 19500 crores for solar PV modules in budget 2022-23. The Government want to create India as an export-oriented country. So, India first decides to create special economic zones, industrial parks and industrial corridors like Defence corridor (one is in Uttar Pradesh, then in Tamil Nadu. After completing this infrastructure, the government have to attract FDI and implement these industrial parks and corridor....

Objective of Production Linked Incentive (PLI) Scheme:

The Government is planning to achieve 60 lakh new jobs and additional production through this scheme. It encourages industries that require a lot of labour and seeks to boost India’s employment rate. The Indian government wants to reduce its dependency on China and be an alternative to the world supply chain system by using its massive human resources. The government also focuses to reduce its import bill as India has a roughly 192 billion trade deficit....

Plan of the Government by the Production Linked Incentive (PLI) Scheme:

At an early stage, this scheme is used by electronics and information technology as a pilot project. After its initial success, it extended to 14 sectors. Government is serious about this scheme, so to remove bottlenecks the government has appointed an empowered group of secretaries who identify the bottlenecks in PLI schemes, coordinate between states and companies for faster approvals, evaluate and ensure quick investments in PLI schemes, and ensure overall turnaround of projects. NITI AAYOG assigns an external agency – state-owned IFCI Ltd or SIDBI – to design and prepare the database. This database will capture value addition, actual exports against commitments made, and job creation. A dashboard to flag hurdles at the state level will also be created....

Incentives in the Production Linked Incentive (PLI) Scheme:

Incentives are based on the incremental jump in sales, vary from 1% to 20%. Like as 1% for the electronics and technology products and a maximum of 20% for critical industries starting drug and drug intermediates. But some sectors are based on sales bases incentive increments like cell batteries, drone components and their allied industry, and textile goods these all are based on the value addition, and sales, during five year time period....

Implementation of the Production Linked Incentive (PLI) Scheme:

In the launching of the year 2020, this scheme was applicable in three industries. These were mobile and allied component manufacturing, medical devices and their component and electrical component Manufacturing....

Related Frequently Asked Questions and Answers:

Q1. Which Ministry Implements The Production Linked Incentive (PLI) Scheme?...