Production Linked Incentive (PLI) scheme

In April last year, the central government had for the first time notified the Production Linked Incentive (PLI) scheme for mobile phones and allied component manufacturing.
As a part of the scheme, companies which set up new mobile and specified equipment manufacturing units or expanded their present units would get incentives of 4 to 6 per cent, after they achieve their investment and production value target for each year. These incentives will be offered for a period of 5 years.
In November, the PLI scheme was expanded to include 12 more sectors such as automobile and automobile components, pharmaceutical drugs, textile products, food products, high efficiency solar photo-voltaic modules, white goods such as air conditioners and LED bulbs, and speciality steel products.
Finance Minister Nirmala Sitharaman had in her Budget for 2021-22 said the total outlay on PLI schemes in these 13 sectors over the next five years would be Rs 1.97 lakh crore.

The Union Cabinet has approved a Rs 12,195-crore Production Linked Incentive scheme for domestic manufacturing of telecom and networking products such as switches, routers, radio access network, wireless equipment and other internet of things (IoT) access devices.

The core component of this scheme is to offset the huge import of telecom equipment worth more than Rs 50,000 crore and reinforce it with ‘Made in India’ products, both for domestic markets and exports.
Currently, India imports over 80 per cent of its telecom and wireless networking equipment.
With the inclusion of telecom equipment manufacturing under the ambit of PLI schemes, the total number of sectors under such programmes stands at 13.
All the sectors included under the various PLI schemes are mostly labour intensive and aim to attract global manufacturing giants into the Indian manufacturing space.
All the sectors chosen under PLI schemes are also a part of the government’s plan to present India as an alternative destination to China for setting up manufacturing hubs.

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