The Production Linked Incentive (PLI) scheme is a government initiative pointed towards boosting domestic manufacturing in specific sectors by providing financial incentives to manufacturers. Under this scheme, eligible companies receive incentives based on the incremental sales of products manufactured domestically.
PLI scheme launched to make India realize its potential growth simultaneously creating employment opportunities and promoting the manufacturing sector. As encouraging domestic manufacturing also reduces dependence on Imports thus protecting India’s precious forex reserves and boosting economic activities as well.
PLI not only enhances competitiveness of domestic manufacturers but also between domestic and international manufacturers and thus has access to the markets worldwide and creates a feasible opportunity for realizing India’s goal of self-reliance. Presence of the PLI scheme expects to attract investment from both domestic and international sources by offering incentives to the manufacturing sector.
As COVID 19 hit the manufacturing sector very hard and all the countries face issue with the global Supply chain Shock Global arena is vocal for a very famous strategy called “CHINA+1” Strategy ,which implies apart from China Global arena is looking for an alternative manufacturing hub to cope up the supply chain shock in any adverse circumstances, with the help of such schemes like PLI India expected to become the favorable manufacturing hub for investors.
PLI covers diverse strategic sectors such as electronic manufacturing, Pharmaceuticals, Automobiles and auto components, Textiles, White goods and more to support these sectors certain financial; allocation done by the government like for manufacturing sector government allocated Rs 40,951 crore over Five years.
The importance of Investment is necessary for promoting manufacturing, as the need of technological upgradation can not be given a back seat as PLI will attract investment along with technological know-how, which can contribute to overall modernisation of India’s manufacturing infrastructure. Importance of Monitoring and evaluation can also not be ignored, hence the government regularly monitors the progress of the PLI scheme and evaluates its impact on various parameters such as job creation, investment inflows, production volume, export promotion, and technology adoption.
Overall, the PLI scheme is designed to accelerate industrial growth, promote innovation, and strengthen India’s position as a global manufacturing hub in various sectors. Production Linked Incentive (PLI) scheme has been a significant policy tool used by the Government of India to boost domestic manufacturing across various sectors.