The Union Cabinet has given its approval to the Production Linked Incentives (PLI) scheme for 10 sectors, under which businesses will get incentives worth over Rs 2 lakh crore in 5 years.
The PLI scheme intends to enhance India’s manufacturing capabilities and enhancing exports.
It will make Indian manufacturers globally competitive, attract investment and enhance exports, said Union Minister Prakash Javadekar while interacting with media after Cabinet meeting.
The 10 key sectors that will get the benefit of production-linked incentive include automobiles and auto components, pharmaceuticals drugs, specialty steel, capital goods, technology products, white goods (ACs and LEDs), telecom and networking products, textiles, high efficiency solar PV modules and advanced battery cells.
Earlier, the Centre had rolled out a similar scheme for electronics manufacturing sector, particularly for mobile phone manufacturing, to curb increasing imports.
The government announced the PLI scheme earlier this year for mobile phones, pharma products, and medical equipment sectors with the view to make India a manufacturing hub and boost exports.
The PLI scheme, unlike other schemes, is an outcome- and output-oriented programme where manufacturers get cash incentives over 5-7 years for production.