PLI Scheme: The production linked incentive (PLI) scheme, introduced by the government across the 10 key specific sectors is aimed at making manufacturers globally competitive and attract investment in the areas of core competency. The scheme is targeted at making the country an integral part of the global supply chain. According to a recent research report by CARE Ratings, the final proposals of PLI for the individual sectors will be appraised by the Expenditure Finance Committee (EFC) and approved by the Union Cabinet. (Also Read: What Is Production Linked Incentive Scheme? Here's All You Need To Know )
Cabinet approves PLI scheme for 10 key sectors for enhancing India's manufacturing capabilities and enhancing exports; scheme will make Indian manufacturers globally competitive, attract investment and enhance exports pic.twitter.com/MuaX1SZ0TC— K.S. Dhatwalia (@DG_PIB) November 11, 2020
Here's how the production linked incentive scheme will affect the 10 key specific sectors once they are individually implemented:
- The scheme for ACC battery is likely to incentivize large domestic and international players in establishing a competitive ACC battery set-up in the country
- The scheme is likely to make the Indian automotive industry more competitive and will enhance global activity for the sector.
- For the telecom sector, the scheme is expected to attract large investments from global players and help domestic companies seize emerging opportunities, to become major players in the export market.
- The scheme will attract large investment in the sector to further boost domestic manufacturing, especially in the MMF segment and technical textiles.
- A focused scheme for solar PV modules will incentivize domestic and global players to build large-scale solar PV capacity in the country and help in capturing the global value chains for solar PV manufacturing
- A PLI scheme in the specialty steel sector will help in enhancing manufacturing capabilities for value-added steel leading to an increase in total exports.
- Specific product lines in food sector having high growth potential to generate medium-to large scale employment have been identified for providing support through the PLI scheme.