New Delhi: The Union Cabinet on Wednesday has given in-principle clearance to Production Linked Incentives (PLI) scheme for ten sectors including white goods, auto, auto components and battery manufacturing wherein sops worth Rs 1.47 lakh crore would be given over the next five years, sources said.
An official announcement is expected later in the day.
ET had last week reported that India would soon extend the PLI scheme to at least eight more sectors to support domestic manufacturing and promote the country as an alternate global manufacturing hub in Asia. Those under discussion were battery manufacturing, auto components, network products, textiles, food processing, solar photovoltaic cells, genomics, artificial intelligence, 5G, robotics and drones.
“Govt has already rolled out a PLI scheme worth Rs 50K cr for electronics and another Rs 10 K cr for pharma APIs.”
A bulk of the outgo will be directed to sectors such as auto, auto components and battery manufacturing, followed by solar photovoltaic cells, according to sources.
The government has already rolled out a PLI scheme worth Rs 50,000 crore for electronics and another Rs 10,000 crore for active pharmaceutical ingredients (APIs).
The PLI is part of the governmentâs plan to make India an attractive manufacturing destination and self-reliant besides helping it emerge as a strong alternative to China. It aims to do this through reduced corporate tax rate of 25%, PLI benefits and phased manufacturing plan (PMP).
“PLI is part of the govt’s plan to make India an attractive manufacturing destination and emerge as a strong alternative to China.”
The government has identified 24 focus sectors as part of its manufacturing push via the PLI and PMP schemes. These include footwear, ceramics and glass, ethanol, ready-to-eat food, aluminium, gym equipment, toys and sporting goods, drones, robotics and electric vehicle equipment. Of these, a few sectors have been identified as priorities with potential for domestic manufacturing and import substitution through import restrictions and quality control orders such as toys and footwear.