ForumIAS LATEST
- FRC 2027: SFG Residential program | accepting application for Tranche-2 Click Here to know more →
- CSAT Classes for Prelims 2027 by Rishi Bhargav sir starts 16 Nov. at 5 PM Click Here to know more →
- Prelims Sprint classes 2027: Starts 2nd Nov. at 4:30 PM | First class open to all. Click Here to know more →
News: RTI data reveals that PLI schemes have generated 5.84 lakh direct jobs by June 2024, which is about 36% of the 16.2 lakh direct jobs planned for the next five years across 14 sectors. Production Linked Incentive (PLI) Scheme
About Production Linked Incentive (PLI) Scheme
- The PLI scheme was launched in March 2020 to strengthen India’s domestic manufacturing sector and improve its role in the global supply chain.
- The scheme initially focused on three industries: mobile and allied component manufacturing, electrical component manufacturing, and medical devices. It was later expanded to cover 14 sectors.
- In the PLI scheme, Domestic and Foreign companies receive financial rewards for manufacturing in India, based on a percentage of their revenue over up to five years.
- Targeted sectors:
Incentives under PLI
- Under the PLI scheme, eligible companies are provided financial incentives based on the increase in sales of products manufactured in India.
- These incentives motivate companies to invest in improving their manufacturing capabilities, adopting advanced technologies, and expanding production capacities.
PLI compared to traditional subsidies
- Limited Eligible Sectors: The PLI scheme is designed to attract substantial investments and scale rapidly, maximizing returns in terms of increased production, employment, and exports.
- Time-bound Investment and Production Commitments: Due to its pre-committed levels of investment and production, it cannot be considered a subsidy scheme.
- Support for Emerging Technologies: The scheme focuses on supporting technologies that can be commercially scaled, such as advanced chemistry cell batteries and electronic and technology products.
