The Union Cabinet has given the go ahead to Production Linked Incentives (PLI) scheme for 10 sectors. These 10 sectors include white goods, auto, auto component and battery manufacturing, reveal sources close to the matter, although an official announcement is expected later.
The extension of the PLI schemes in these sectors is done to support the domestic manufacturing and promoting the country as an alternate global manufacturing hub in Asia. According to the sources, it is said that a bulk of the outgo would be directed towards sectors like auto, auto components and battery manufacturing, followed by solar photovoltaic cells.
Battery manufacturing, auto components, network products, textiles, food processing, solar photovoltaic cells, genomics, artificial intelligence, 5G, robotics and drones, were some of the sectors were in the discussion when it was previously reported that India would soon extend the PLI scheme to at least eight more sectors.
24 focused sectors have been identified by the Government, as a part of its manufacturing push through the PMP and PLI scheme. Out these 24 focused sectors that include footwear, ceramics and glass, ethanol, ready-to-eat food, aluminium, gym equipment, toys and sporting goods, drones, robotics and electric vehicle equipment – few of these sectors were prioritised with potential for domestic manufacturing and import substitution through import restrictions and quality control orders such as toys and footwear.
Production Linked Incentives scheme of worth Rs 50,000 crore and Rs 10,000 for electronics and active pharmaceutical ingredients (APIs) were already been rolled out by the government.
The PLI scheme aims at making India an attractive manufacturing destination and self-reliant by reducing the corporate tax rate of 25%, Phased Manufacturing Plan (PMP) and other PLI benefits and scale economies and enhance exports to make India an integral part of the global supply chain.