The Union Cabinet has approved Production Linked Incentive (PLI) scheme worth Rs 2 lakh crore for 10 sectors in order to boost India's manufacturing capabilities and enhancing exports. The scheme will make Indian manufacturers globally competitive and attract investment and enhance exports, the Information and Broadcasting Minister Prakash Javadekar said while briefing reporters after a meeting of the Cabinet.
Production-linked incentives will be offered for sectors such as white goods manufacturing, pharmaceutical, specialised steel, auto, telecom, textile, food products, solar photovoltic and cell battery.
Niti Aayog Vice Chairman Rajiv Kumar had announced last month that the government would introduce production-linked incentive (PLI) scheme for additional sectors to boost domestic manufacturing.
The government had earlier rolled out a PLI scheme worth Rs 50,000 crore for large scale electronic goods makers for five years, to attract investments in mobile phone manufacturing and electronic component units.
The government had also announced production linked incentives worth Rs 10,000 crore for pharmaceutical companies to produce bulk drugs and medical devices.
The PLI initiative is a part of the government's plan to support domestic manufacturing and convert India into an attractive and alternate manufacturing destination.
Meanwhile, according to sources in the Finance ministry, another round of stimulus is likely to be announced before Diwali. The stimulus would focus on job manufacturing and a further extension of the cabinet's decision to give a push to growth with productivity-linked schemes.