An Overview on Production Linked Incentive (PLI) Scheme by The Government of India

Abstract

The Production Linked Incentive (PLI) scheme introduced by the Government of India is a strategic initiative aimed at promoting domestic manufacturing and reducing reliance on imports. The scheme offers financial incentives to eligible companies operating in specific sectors such as automobiles, textiles, pharmaceuticals, and electronic components. Under the PLI scheme, companies are incentivized based on their incremental sales of manufactured goods over a specified base year. This scheme not only fosters the growth of domestic industries but also enhances their competitiveness in the global market. By providing a boost to manufacturing capabilities, the PLI scheme aligns with the government's vision of a self-reliant India and drives investment, employment, and technological advancement.

Keywords: Production Linked Incentive (PLI), Government of India, manufacturing, incentives, boosting domestic production, competitive advantage, global market, investment, job creation, technology upgradation, import substitution, sector-specific, eligible products, target segments, production thresholds, ma

JEL Classification: A00 A10 A11 A19 A20 E00 E30 E49 E50 H00 P00 P16 P20 R10 R38 R50