Govt to extend INR 35,000 cr. PLI across sectors

The sectors to avail incentives under the Product Linked Incentive (PLI) scheme include leather, vaccine materials, bicycles and telecom

October 17, 2022

The scheme is also being considered to be extended across sectors such as toys, chemicals, and shipping containers

The demand for goods from many sectors has been created, enabling government officials to hold inter-ministerial talks to extend PLI benefits across such sectors

The government has saved INR 2 trillion through the scheme, and the amount could be used for more sectors to avail of PLI benefits

The PLI scheme was initially launched with an outlay of INR 2 trillion for 14 sectors

With an aim to create further employment and boost local manufacturing, the Indian government is planning to extend its INR 35,000 crore Product Linked Incentive (PLI) scheme across different industries, including leather, vaccine materials, bicycles and telecom, according to officials. 

The scheme is being considered to be extended across sectors such as toys, chemicals, and shipping containers. This announcement was made by Commerce and Industry Minister Piyush Goyal last month. 

Media reports said that the demand for goods from many sectors has been created, enabling government officials to hold inter-ministerial talks to extend PLI benefits across such sectors. Officials mentioned that the government has saved INR 2 trillion through the scheme, and the amount can be used for more sectors to avail of PLI benefits.

The PLI scheme was initially launched with an outlay of INR 2 trillion for 14 sectors, including white goods, automobiles, pharmaceuticals, textiles, automobiles & auto components, high-efficiency solar photovoltaic modules, speciality steel, and advanced chemistry. Its aim is to make Indian manufacturers globally competitive, attracting FDI in different sectors, increasing exports, and creating economies of scale, among other things, to make India a global manufacturing hub.  

Implication

The PLI scheme is a strategic catalyst for boosting the government’s “Make in India” initiative, and also achieving its export target of US$ 2 trillion over the next eight years. 

Source: Economic Times

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