Production-linked Incentive has been approved by the Cabinet for 10 key sectors for a period of five-years totalling to Rs 2 lakh crore. This is said to benefit a large number of domestic manufacturers, decreased pressure of imports and generate employment as the government works towards improving economic growth. The sectors included under the PLI scheme are mostly labour-intensive and will be implemented by the respective ministries.
The sectors that will get incentive include advance chemistry cell batteries, electronic and technology products, automobiles and auto components manufacturing, among others that aremostly labour-intensive. Previously, it included mobile phones and allied equipment manufacturing, pharmaceutical ingredients and medical devices.
According to this scheme, companies will get incentives on incremental sales from products manufactured in domestic units.The Finance Minister Nirmala Sitharaman announced that, this scheme will also provide encouragement to the critical sunrise sectors by ensuring necessary support from the government in addition to creating jobs and linking India to global value chain.
This scheme will also help foreign companies in form of incentives to set up in India. Concerned ministry will be in charge of each department of such industries. For example; Niti Aayog will oversee the PLI scheme for the manufacture of advanced chemistry cell batteries, for which a sum of Rs 18,100 crore has been allotted for five years. The Ministry of Electronics and Information Technology, the nodal ministry for the implementation of the PLI scheme for mobile phone manufacturing, will also oversee the scheme for electronic and technology products.
Any addition of the new sector for PLI will require fresh approval of the Cabinet. If there are any savings from any sector under the PIL, it will be utilized in another sector. This move has been said to be remarkable and anticipated to be helpful to the manufacturing sector that has hit hard.
