Impact of Production Linked Incentive Scheme on the Manufacturing Sector By Saurav Motiramani
What is Production Linked Incentive (PLI) Scheme? In order to boost domestic manufacturing and cut down on import bills, The Ministry of Electronics and Information and Technology (MeitY) notified the Production Linked Incentive (PLI) Scheme on April 1, 2020 a scheme that aims to expand existing manufacturing units for Large Scale Electronics Manufacturing with an aim to boost domestic manufacturing of mobile phones in India & give companies incentives on incremental sales from products manufactured in domestic units. Apart from inviting foreign companies to set shop
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in India, the scheme also aims to encourage local companies to set up. For this, the government has committed nearly ₹1.97 lakh crores, over 5 years starting FY 2021-22. With the launch of this PLI Scheme, the government looks forward to attract large investments in manufacturing mobile phones including the Assembly, Testing, Marking and Packaging (ATMP) units. Now, the Central Government looks forward to further expand the ambit of the PLI Scheme with the inclusion of about ten more sectors under it, apart from mobile phones, pharmaceutical ingredients and medical devices. Know the important details of the scheme below:
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