Government expands Production-Linked Incentive Scheme
Part of: GS Prelims and GS-II – Policies and interventions & GS-III – Industry
- The government will extend the production-linked incentive (PLI) scheme to eight more sectors to boost domestic manufacturing.
- 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.