Government expands Production-Linked Incentive Scheme

  • IASbaba
  • October 23, 2020
  • 0
UPSC Articles
Print Friendly, PDF & Email

Government expands Production-Linked Incentive Scheme

Part of: GS Prelims and GS-II – Policies and interventions & GS-III – Industry 

In news

  • The government will extend the production-linked incentive (PLI) scheme to eight more sectors to boost domestic manufacturing.

Key takeaways 

  • All the sunrise and important sectors are proposed to be covered in this.
  • The sectors may be automobile, networking products, food processing, advanced chemistry and solar PV manufacturing.
  • Through PLI Scheme, incentives will be paid only if the manufacturers make the goods.
  • This scheme will give cash incentives for five to seven years.

Important value additions 

PLI Scheme for Large Scale Electronics Manufacturing

  • The scheme proposes a financial incentive to boost domestic manufacturing and attract large investments in the electronics value chain including electronic components and semiconductor packaging.
  • Under the scheme, electronics manufacturing companies will get an incentive of 4 to 6% on incremental sales (over base year) of goods manufactured in India for a period of next 5 years.
  • The scheme shall only be applicable for target segments – mobile phones and specified electronic components.
  • With the help of the scheme, domestic value addition for mobile phones is expected to rise to 35-40% by 2025 from 20-25%. 
  • It shall also generate 8 lakh jobs more, both direct and indirect.

Do you know? 

  • The government has launched the PLI scheme for mobile phones (electronic manufacturing) and it was also extended to pharma products and medical equipment sectors.

Search now.....

Sign Up To Receive Regular Updates