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November 27, 2024 07:08
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PLI Scheme, a government initiative to promote manufacturing in India and make it a global hub. Discover more about PLI Scheme’s full form, its benefits, and objectives here.
PLI Scheme: The Production-Linked Incentive (PLI) Scheme is a government initiative introduced in India to encourage businesses to boost their production. Under this scheme, companies are rewarded with financial incentives based on how much they produce and sell. The goal is to make India a global manufacturing hub, attract investments, and create jobs.
The full form of PLI is a Production-Linked Incentive. In 2021, the government announced PLI schemes worth ₹1.97 lakh crore (approximately US$28 billion) for 14 key sectors, including Auto components, Automobile, Aviation, Chemicals, Electronic systems, Food processing, Medical devices, Metals and mining, Pharmaceuticals, Renewable energy, Telecommunications, Textiles and apparel, and White goods.
These schemes are currently being implemented by the respective ministries and departments. The PLI schemes are expected to have a positive cascading effect on the country’s Micro, Small, and Medium Enterprises (MSME) ecosystem.
To understand better, here is an example. The government announced the PLI Scheme for the National Programme on High-Efficiency Solar PV Modules aims to develop manufacturing capacity at the giga-watt (GW) scale for high-efficiency solar PV modules.
The main objective of PLI was to promote manufacturing in India and boost exports worldwide to make India a global hub. Discover more about the PLI Scheme’s full form, its benefits, and objectives here. The PLI scheme was launched with the following main objectives:
The Production-Linked Incentive (PLI) scheme is a transformative initiative by the Indian government aimed at boosting domestic manufacturing. It was launched in 2020 across key sectors to provide financial incentives for industries to scale production and enhance global competitiveness. The PLI scheme offers several benefits:
The PLI scheme covers a total of 14 key sectors that are crucial for India’s economic growth and development. Here are the 14 sectors currently included in the PLI scheme:
The PLI scheme was launched to incentivize domestic manufacturing, promote exports, and reduce import dependency across 14 key sectors. While it has shown promising results in boosting exports and fostering industrial growth, its implementation has been slower than anticipated, with challenges in meeting initial targets.
Boost in Exports
Slow Implementation
Lower Job Creation
The Production Linked Incentive (PLI) Scheme has proven to be a transformative force in reshaping India’s manufacturing sector, driving growth across key industries and positioning the country as a global leader in innovation, production, and exports. With its strategic focus on 14 key sectors including electronics, pharmaceuticals, automotive, renewable energy, and more, the PLI scheme has already achieved remarkable milestones in terms of investment, production, and job creation. As the country continues on its path to self-reliance under the Atmanirbhar Bharat vision, the success of these initiatives is a testament to India’s growing manufacturing capabilities, technological advancements, and its ability to compete on the world stage. The PLI scheme not only contributes to strengthening India’s industrial backbone but also accelerates its integration into global supply chains, fostering sustainable growth and prosperity for years to come.
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