The PLI scheme for 10 more sectors has a total estimation of Rs 1.45 lakh crore

Nirmala Sitharaman on PLI Scheme

By Anwesha Majumdar

The Production Linked Incentive (PLI) scheme has been approved by the Union cabinet for an expansion of 10 more labor-intensive industry segment. These will include advanced chemistry cell batteries, electronic products, technological amenities, automobiles and auto component manufacturing. This PLI scheme will be operational for five years.

In this scheme, there will be an addition to the PLI schemes for mobile phone equipments, pharmaceutical ingredients as well as medical device. For these the government has planned an outlay of Rs 51,311 crore. This will make the total outlay on PLI schemes more than 2 lakh crore. The PLI scheme for mobile manufacturing has approved for more than 16 companies, including the three biggest suppliers of Apple.

Apple store

 

The primary aim of the PLI scheme is to enhance the domestic manufacturing and minimize imports by proving cash incentives on incremental sales from any product manufacture from the country. Even welcoming foreign companies to build good relation with India. This will help in encouraging local companies to set up as well as expanding existing manufacturing units.

Briefing the media after a cabinet meeting, Nirmala Sitharaman said these are rising sectors selected, keeping in mind the need for job creation. India will get to link with global value chain and have to be self-reliant. She further said other labor-intensive areas such as textile and food products, high efficiency solar photovoltaic modules, white goods and specially steel manufacturing are also under the PLI scheme. The implementing ministries and departments will prepare a detailed plan on how the outlay allotted for each sector will be utilized for the next 5 years.

Source: The Times of India, The Indian Express.