Production Linked Incentive (PLI) Schemes

PLI Schemes, a cornerstone of the Government’s push for achieving an AtmaNirbhar Bharat was launched in March 2020 to provide support to the sectors, regain dominance in global trade and be more prepared for the volatilities and shocks in global supply chains as opposed to the protectionist approach of the pre-1991 era.

• The Government has already committed Rs.1.97 lakh crores, over 5 years starting from 2021-22 in 13 sectors. The initial 13 sectors are Electronic/Technology Products, Medical devices, Drug intermediaries and APIs, Mobile Manufacturing and Specified Electronic Components, Pharmaceuticals drugs, Telecom & Networking Products, Telecommunications, Food Products, White Goods (ACs & LED), High Efficiency Solar PV Modules, Automobiles & Auto Components, Advance Chemistry Cell (ACC) Battery, Textile Products- Man Made Fabrics segment and technical textiles and Specialty Steel.
• Recently, PLI in the 14th sector - drones and drone components has been included with an additional layout of Rs. 120 crores.

Objectives

• Boost domestic manufacturing in sunrise and strategic sectors
• Improve cost competitiveness of domestically manufactured goods
• Enhance domestic capacity and economies of scale
• Attract investments in sectors of core competency and cutting-edge technology

Significance

• Introduce latest technology in the country
• Generate direct and indirect employment by reaching global scales
• Ensure penetration of Indian companies in the global value chains.
• Make domestic manufacturing globally competitive and will create global champions in manufacturing.