In order to bring competitiveness in the global market and for the promotion of Make in India concept, the Government of India has notified Production Linked Incentives (PLI) Scheme to boost domestic manufacturing and exports in focused areas. The purpose is to expand manufacturing sector by incentivising manufacturing companies for incremental sales, to stimulate employment and utilisation of resources, technology etc.
The Scheme encourages foreign companies and domestic companies both to establish manufacturing units in India. The PLI Schemes were notified focusing following industries:
Under the PLI Scheme the eligible manufacturers receive incentives i.e. 5%-7% of incremental sales revenue disbursed in 5-6 years, subject to achieving the production/ sales targets and other eligibility criteria.
Overall, the PLI scheme in India offers significant benefits to eligible manufacturers, including financial incentives, enhanced competitiveness, reduced import dependence, job creation, technology upgradation, business expansion, and long-term support. It aims to boost domestic manufacturing and promote economic growth in select sectors, making it an attractive initiative for eligible manufacturers in India.
Budget 2024-25 could see India pushing its success story in production linked incentives (PLIs) for electronics further with the announcement of a new PLI for sub-assemblies and components. Pegged to be in the range of Rs 35,000-40,000 crore, the scheme has been in the works since February at the Ministry of Electronics and Information Technology with a clear purpose to build an ecosystem for higher local sourcing of components, multiple sources told Moneycontrol.
