Production-linked Incentive (PLI) Scheme
- Posted By
10Pointer
- Categories
Economy
- Published
23rd Oct, 2020
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- The government is considering an extension of the production-linked incentive (PLI) scheme to 7-8 more sectors to promote domestic manufacturing.
- The government recently announced the PLI scheme for mobile phones, pharma products, and medical equipment sector to make India a manufacturing hub
- It is a part of the National Policy on Electronics. It proposes a financial incentive to boost domestic manufacturing and attract large investments in the electronics value chain.
- The scheme shall extend an incentive of 4% to 6% on incremental sales (over a base year) of goods manufactured in India and covered under target segments, to eligible companies, for a period of five (5) years with financial year (FY) 2019-20 considered as the base year for calculation of incentives.
- According to the scheme, companies that make mobile phones which sell for Rs 15,000 or more will get an incentive of up to 6 per cent on incremental sales of all such mobile phones made in India.
- In the same category, companies which are owned by Indian nationals and make such mobile phones, the incentive has been kept at Rs 200 crore for the next four years.
