Topics Covered: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
Production-linked incentive (PLI) scheme:
Context:
The Central government has unveiled a production-linked incentive (PLI) scheme to encourage domestic manufacturing investments in 10 more sectors, with an estimated outlay of about ₹1.46 lakh crore over the next five years.
- These sectors have been identified on the basis of their potential to create employment and make India self-reliant.
The 10 sectors include:
Food processing, telecom, electronics, textiles, speciality steel, automobiles and auto components, solar photo-voltaic modules and white goods, such as air conditioners and LEDs.
About the PLI scheme:
To make India a manufacturing hub, the government had announced the PLI scheme for mobile phones, pharma products, and medical equipment sectors.
- Notified on April 1 as a part of the National Policy on Electronics.
- It proposes a financial incentive to boost domestic manufacturing and attract large investments in the electronics value chain.
What the scheme seeks to achieve?
- Make domestic manufacturing competitive and efficient.
- Create economies of scale.
- Make India part of global supply chain.
- Attract investment in core manufacturing and cutting edge tech.
- Competitive manufacturing would in turn lift exports.
InstaLinks:
Prelims Link:
- Key proposals under the National Policy on Electronics.
- Production linked incentive scheme- when was it announced?
- Incentives under the scheme is available to?
- What kind of investments will be considered?
- Duration of the scheme.
- Who will implement it?
Mains Link:
What is the production linked incentive scheme for electronics manufacturers? Discuss.
Sources: the Hindu.
