The government has approved to introduce the Production-Linked Incentive (PLI) Scheme in some 10 sectors to drive India’s manufacturing capabilities and enhancing exports. The decision was made by the Union Cabinet chaired by PM Narendra Modi on November 11, 2020.
An outlay for five years was approved by the cabinet in the following 10 sectors:
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Advance Chemistry Cell (ACC) Battery sector -Rs18,100cr.
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Electronic/Technology Products sector - Rs5,000cr.
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Automobiles & Auto Components sector - Rs57,042cr.
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Pharmaceuticals drugs - Rs15,000cr.
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Telecom & Networking Products - Rs12,195cr.
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Textile Products: MMF segment and technical textiles - Rs10,683cr.
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Food Products - Rs10,900cr.
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High-Efficiency Solar PV Modules - Rs4,500cr.
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White Goods (ACs & LED) - Rs6,238cr.
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Speciality Steel - Rs6,322cr.
Cumulatively, the cabinet has approved a total Rs1,45,980cr outlay on the above-mentioned sectors.
The Cabinet said, the PLI scheme will be implemented by the concerned ministries/departments and will be within the overall financial limits prescribed. The final proposals of PLI for individual sectors will be appraised by the Expenditure Finance Committee (EFC) and approved by the Cabinet.
Further, the Cabinet said, savings, if any, from one PLI scheme of an approved sector can be utilized to fund that of another approved sector by the Empowered Group of Secretaries. Any new sector for PLI will require fresh approval of the Cabinet.
"The PLI scheme across these 10 key specific sectors will make Indian manufacturers globally competitive, attract investment in the areas of core competency and cutting-edge technology; ensure efficiencies; create economies of scale; enhance exports and make India an integral part of the global supply chain," Cabinet added.
Notably, the above 10 sectors are in addition to already notified PLI schemes in the following sectors:
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Mobile Manufacturing and Specified Electronic components with a financial outlay of Rs40,951cr.
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Critical Key Starting materials/Drug Intermediaries and Active Pharmaceutical Ingredients having an outlay of Rs6,940cr.
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Also, manufacturing of medical devices with an outlay of Rs3,420cr.
"The Prime Minister's clarion call for an 'AatmaNirbhar Bharat' envisages policies for the promotion of an efficient, equitable and resilient manufacturing sector in the country. Growth in production and exports of industrial goods will greatly expose the Indian industry to foreign competition and ideas, which will help in improving its capabilities to innovate further," Cabinet said.
Furthermore, the Cabinet said, "Promotion of the manufacturing sector and creation of a conducive manufacturing ecosystem will not only enable integration with global supply chains but also establish backward linkages with the MSME sector in the country. It will lead to overall growth in the economy and create huge employment opportunities."
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