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Centre unveils PLI to encourage domestic manufacturing

  • Posted By
    10Pointer
  • Categories
    Economy
  • Published
    17th Nov, 2020
  • The government unveiled a production-linked incentive scheme to encourage domestic manufacturing investments in ten more sectors, with an estimated outlay of about ?1.46 lakh crore over the next five years.

What is PLI Scheme?

  • As a part of the National Policy on Electronics, the IT ministry had on April 1 notified a scheme which would give incentives of 4-6 per cent to electronics companies which manufacture mobile phones and other electronic components.
  • Under the PLI scheme, cash subsidies will be provided to companies as a percentage of incremental sales from the base year.
  • The base year is the year when the scheme comes into effect.
  • The percentage of the incentive will depend on the ‘disadvantage’ faced by each sector in domestic manufacturing and will vary from sector to sector.
  • The PLI scheme will be implemented by the ministries/departments concerned and adhere to the prescribed financial limits.

The sectors

  • The ten sectors had been identified on the basis of their potential to create jobs and make India self-reliant.
  • They include food processing, telecom, electronics, textiles, speciality steel, automobiles and auto components, solar photo-voltaic modules and white goods such as air conditioners and LEDs.