- PLI scheme is speculated to contribute $520 billion to the GDP in the coming five years
- This scheme will reduce the dependence of India for imports, mostly from China
According to a government report, the newly unleashed Product Linked Incentives (PLI) scheme would uplift the local manufacturing cluster in India. It is also speculated to contribute $520 billion in the coming five years. Industry experts suggested that this scheme would mostly benefit the manufacturing of mobile phones compared to all other products.
The various other sectors, which will benefit include telecom, pharma, textile, food, battery, and automobile. While launching the scheme during the pandemic back in March, the government announced that this scheme will reduce the dependence of India from imports, mostly from China. It invited global firms including Fortune 500 companies to set-up their manufacturing units in India.
Domestic brokerage firm Sharekhan by PNB Paribas said in a note PLI scheme may add around $520 billion to the GDP in the next five years.
It will mostly benefit 10 sectors that are labour-intensive and speculated to respond to the augmenting employment requirements. According to PTI, the government has made a budgetary outlay of Rs 1.96 lakh Crore or USD 26 billion to boost the scheme. As an incentive, this scheme will offer an average of 5 per cent of the production value, which means that minimum production from this scheme stands at $520 billion in the next five years.