Production Linked Incentive (PLI) scheme was introduced first in 2020 with a view to boost domestic manufacturing. This scheme has been launched in 13 sectors identified by the government with a total budgeted outlay of INR 1970 billion (US$26.48 billion).
It involves financial incentives for businesses to augment their output, whether in the form of tax rebates, lowered import and export duties or land acquisition norms. This scheme has been launched in line with India’s Atmanirbhar Bharat Campaign.
Each scheme is applicable for a four to six-year duration period, depending on the sector. The schemes aim to develop capacities in the local supply chain, introduce new downstream operations, and incentivize investments into high-tech production.
The scheme has received interest from over 900 players across sectors, of which around 350 have got approval so far. The resultant benefits include job creation, export capabilities, and lessening the import dependency – particularly in critical sectors and high-tech goods.