New PLI scheme notified for white goods and telecom sector

New PLI scheme notified for white goods and telecom sector

Part of: GS Prelims and GS -III – Economy 

In news

• Recently, Production Linked Incentive schemes were announced for white goods and Telecom and Network Equipment
• White goods include large electrical goods used domestically such as refrigerators and washing machines, Air conditioners and LED lights, typically white in colour.

For White Goods

• Objective: 
  • To create complete component ecosystems in India
  • To make India an integral part of the Global supply chains 
• Duration and funds 
  • Rs. 6,238 crores 
  • From 2021-22 to FY 2028-29 
• Features 
  • It will offer an incentive of 4 to 6% on incremental sales of goods manufactured in India. 
• Benefits 
  • Increased investment, production, exports
  • Create additional 4 lakh direct and indirect jobs

For Telecom sector and Network Equipment 

• Objective
  • To make India a global manufacturing hub for Telecom and networking products.

• Duration and funds 

• • Rs. 12, 195 crores with 1,000 crore to be allocated for MSMEs 
  • From Fy 2021-22 to FY 2025-26 
• Features 
  • It is available to both MSMEs and non MSMEs companies. 
  • Also available to Domestic and global companies with minimum investment threshold limits for MSMEs above Rs. 10 crore and non MSMEs above Rs. 100 crore.
• Benefits 
  • Investment of around Rs. 3,000 crores
  • Increased production and exports of Rs. 2 lakh crore over five years
  • Create direct and indirect jobs