The Re-Beginnan | Vol.2 | Issue 25
PLI scheme extended to 10 additional sectors: All you need to know!
Current Scenario in a Gist…
The GoI introduced a Production Linked Incentive (PLI) Scheme in March 2020, in order to promote domestic manufacturing, reduce import dependence and generate employment. PLI Scheme sets to give incentives on incremental sales on domestically manufactured products. The aim of the scheme is also to promote foreign companies to set up manufacturing units in India along with encouraging domestic companies to expand or set-up new manufacturing units. So far, the scheme was introduced for Mobile & Allied Equipment (INR 40,951 crore) and APIs (INR 6,940 crore) & Medical Devices (INR 3,420 crore) with a total outlay of INR 51,311 crores.
What’s New?
Finance Minister on 11th November 2020 extended PLI Scheme to additional 10 key sectors with a total outlay of INR 1.46 lac crore for a period of 5 years. She added, “The selection of sectors has been based on job creation, the global value chain, the sunrise sectors and the larger principle of self-reliant India”.
Ministry/department concerned with the sector will implement the scheme within the overall financial limits prescribed. The Expenditure Finance Committee (EFC) will appraise the final proposal of PLI for individual sectors, which will be approved by the cabinet.
Savings left from one PLI scheme for an approved sector can be utilized to fund another approved sector by the Empowered Group of Secretaries. Upon a fresh approval of the cabinet new sectors can be included in the PLI scheme.
Following are 10 key sectors for Enhancing India’s Manufacturing Capabilities and Enhancing Exports (INR in crore):
Sector-wise product lines eligible for the scheme is presented below:
Closing Note…
Ms. Sitharaman stressed that India is not turning protectionist and the cabinet’s decision should be viewed as a clear signal of that. “We are once again proving it, even in PLI, we want to build on our strengths and link with the global value chain”, she added.
