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What is Production Linked incentive scheme for electronics manufacturing? How does the scheme benefit Indian economy? Explain.

Topic: Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment

5.  What is Production Linked incentive scheme for electronics manufacturing? How does the scheme benefit Indian economy? Explain. (250 words)

Reference: Indian Express 

Why the question:

The article talks about the production linked incentive scheme for electronics manufacturing and its benefits to the Indian economy.

Key Demand of the question:

Discuss what Production Linked incentive scheme for electronics manufacturing is and explain does the scheme benefit Indian economy.

Directive:

Explain – Clarify the topic by giving a detailed account as to how and why it occurred, or what is the particular context. You must be defining key terms where ever appropriate, and substantiate with relevant associated facts

Structure of the answer:

Introduction:

Define Production Linked incentive scheme.

Body:

Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing, Notified on 1st April, 2020. Incentives are applicable under the scheme from 01.08.2020.

 What it is? an incentive of 4% to 6% on incremental sales (over base year) of goods under target segments that are manufactured in India to eligible companies, for a period of five years subsequent to the base year (FY2019-20). 22 companies have filed their application under the Scheme.

Discuss the benefits and challenges associated with it.

Conclusion:

Conclude with the prospects of the program.