PLI Scheme India, India is heading towards complete self-sufficiency under Prime Minister Shri Narendra Modi’s leadership. As part of the Make in India movement, many measures have been taken to boost domestic manufacturing. This series starts with the Production Linked Incentive Scheme 2024 | PLI Scheme. The nation’s ability to become self-sufficient will be greatly aided by this policy, which encourages domestic production.
Financial incentives will be given to qualifying industries under the system, which will increase production, create jobs, and lower imports. We will provide you with all the details you need to know about the PLI Scheme 2024 in this post, including its goals, features, eligibility requirements, application process, necessary paperwork, application status, beneficiary list, and other pertinent information. Read this post attentively if you wish to gain from this arrangement.
Contents
What is the plea scheme in india
By encouraging domestic production, the PLI plan, which was introduced on November 11, 2020, seeks to make India self-reliant. Under this initiative, ₹2 lakh crore would be invested over the next five years in ten essential industries. The plan will enhance the economy by increasing exports, reducing reliance on imports, and boosting domestic manufacturing. Additionally, the production-based incentive program will lower the jobless rate. According to government estimates, this initiative will cost ₹1,45,980 crore. Along with promoting the Atmanirbhar Bharat Abhiyan, the initiative would increase manufacturing. A 25% reduction in business tax will also be implemented under this plan. The program will be essential to turning India into a major global manufacturing hub and to the accomplishment of the “Make in India” campaign.
- The Manufacturing in India program and the Atmanirbhar Bharat Abhiyan inspired the creation of the Production Linked Incentive Scheme.
- The PLI program seeks to increase employment creation, import substitution, and domestic manufacturing capability.
- The following three industries were the initial targets of the Production Linked Incentive (PLI) Scheme:
- Manufacturing of electrical components
- Manufacturing of mobile devices and accessories
- medical equipment
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PLI Scheme India- Overview
| Details | Information |
| Scheme Name | Production Linked Incentive Scheme 2024 | Production Linked Incentive Scheme 2024 | PLI Scheme |
| Launched by | Government of India |
| Beneficiary | Citizens of India |
| Objective | Promoting domestic manufacturing |
| Official website | will be launched soon |
| Year | 2024 |
| Start date | 11 November 2020 |
| Budget | ₹2 lakh crore |
Objectives of the Production Linked Incentive Scheme
Offering rewards to businesses for increased sales of products made in residential units is the main goal of the Production Linked Incentive (PLI) Scheme. The aims of the Production Linked Incentive (PLI) Scheme are as follows:
- 60 lakh new job possibilities should be created.
- Boost exports from India.
- lower the import bill.
- Boost the scale of home economies.
- To entice outside investment in state-of-the-art technology.
- To raise extra production by 30 lakh crore throughout the course of the following five years.
- Expand the number of non-agricultural jobs available.
Key Features of the PLI Scheme
The PLI Scheme differs from previous government efforts due to a number of distinctive aspects, including:
- Motivational Framework: The PLI Scheme’s incentive structure is created to pay businesses according to the extra production they generate. The program specifies precise reward percentages that change depending on the industry. Financial gains are guaranteed to be directly associated with the production generated thanks to this performance-based methodology.
Emphasis Areas
The PLI Scheme encompasses a wide range of industries, each with unique goals:
- Electronics: This industry seeks to make India a major player in the global electronics market by increasing the manufacture of mobile phones, consumer electronics, and semiconductors.
- Pharmaceuticals: The objective is to decrease reliance on imports from other nations by increasing domestic production of vital medications, especially those that are vital to public health.
- Textiles: By utilising India’s rich textile legacy and highly skilled labour force, the initiative aims to increase the production of high-value textiles and clothing.
- Automobiles: The PLI Scheme supports environmentally friendly and cutting-edge manufacturing techniques in the automobile industry, with an emphasis on electric vehicles and cutting-edge automotive components.
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Sectors covered under PLI Scheme 2024
The government has listed the following 14 sectors under the Production Based Incentive Scheme 2024:
- Mobile Manufacturing
- Medical Equipment Manufacturing
- Automobiles and their Components
- Pharmaceuticals
- Medicines
- Specialty Steel
- Telecom and Networking Products
- Electronic Products
- Home Appliances (ACs and LEDs)
- Food Products
- Textile Products
- Solar PV Modules
- Advanced Chemical Cell (ACC) Battery
- Drones and their Components
Eligibility Criteria for the PLI Scheme
Companies must fulfil specific eligibility requirements, which differ depending on the industry but generally include:
- Certain Investment Requirement: In order to qualify for the program, companies must invest a certain amount of money.
- Production Capacity: Candidates must show that they are able to increase output considerably.
- Conformity with Standards: Government-established quality and safety requirements must be followed by manufacturers.
Benefits of the PLI Scheme
Numerous advantages are offered by the PLI Scheme to manufacturers as well as the overall economy:
For Manufacturers
- Financial Support: By providing clear incentives for raising output, the program enables businesses to reinvest earnings in expansion and innovation.
- Competitive Edge: Manufacturers can increase their profitability and market competitiveness by utilising financial incentives.
- Encouragement of Innovation: By incentivising businesses to invest in novel technology and procedures, the PLI Scheme promotes an innovative culture.
For the Economy
- Job Creation: Millions of jobs are anticipated to be created by the program, which will significantly lower unemployment rates nationwide.
- Skill Development: As manufacturing activities rise, training programs are required to improve the workforce’s skill set and employability.
- Economic Growth: As the GDP grows, more output and exports assist the nation meet its economic goals.
Budget of each sector under the Production Based Incentive Scheme 2024
| Sectors | Budget |
| Advanced Chemistry Cells Batteries | 18,100 Rs.crore |
| Electronic & Technology Products | 5000 Rs.crore |
| Automobiles & Auto Components | 57,042 Rs.crore |
| Pharmaceutical Drugs | 15000 Rs.crore |
| Telecom & Networking Products | 12,195 Rs.crore |
| Textile Products | 10,683 Rs.crore |
| Food Products | 10,900 Rs.crore |
| Solar PV Modules | 4500 Rs.crore |
| White Goods | 6,238 Rs.crore |
| Specialty Steel | 6,322 Rs.crore |
Extension of PLI Scheme 2024
On November 11, 2020, under the direction of Prime Minister Narendra Modi, the Union Cabinet approved the PLI scheme’s debut for ten important industries that can boost exports and India’s manufacturing capacity. The expanded scheme’s ten additional sectors and the authorised financial outlay are listed below:
| Sectors | Implementation Ministry/Department | Approved financial outlay for a period of five years |
| Advanced Chemistry Cells (ACC) Batteries | NITI Aayog and Department of Heavy Industry | 18100 |
| Electronic/Technical Products | Ministry of Electronics and Information Technology | 5000 |
| Automobiles & Auto Components | Department of Heavy Industry | 57042 |
| Drugs (Pharmaceuticals) | Department of Drugs (Department of Pharmaceuticals) | 15000 |
| Telecom & Networking Products | Department of Telecommunications | 12195 |
| Textile Products: MMF Segment & Technical Textiles | Ministry of Textiles | 10683 |
| Food Products | Ministry of Food Processing Industries | 10900 |
| High Efficiency Solar PV Modules | Ministry of New and Renewable Energy | 4500 |
| White Goods (AC & LED) | Department of Promotion of Industry and Internal Trade | 6238 |
| Special Steel | Ministry of Steel | 6322 |
Challenges and Criticisms of the PLI Scheme
Although the PLI Scheme has drawn positive attention, there are still obstacles to overcome:
Potential Issues Faced by Businesses
- Complicated Application Process: Smaller firms may be discouraged by the application process’s arduousness.
- Need for Clear Guidelines: Businesses need information on qualifying requirements and incentive payouts to be clear.
Critiques from Industry Experts
- Sustainability Concerns: Some analysts wonder if the incentives will result in long-term sustainable growth or if businesses will always depend on government assistance.
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Conclusion
One important initiative to change India’s manufacturing scene is the PLI Scheme. It can boost exports, develop the economy, and generate jobs by offering financial incentives and encouraging growth in certain sectors. The PLI Scheme would be essential in determining how India will develop into a manufacturing hub in the future.
Faq’s
Q. What is the PLI Scheme?
Ans: By offering financial incentives to businesses depending on their production levels, the Government of India’s Production-Linked Incentive (PLI) Scheme aims to increase domestic manufacturing and draw in international investment.
Q. Which industries are under the purview of the PLI Scheme?
Ans: The PLI Scheme includes a wide range of industries, including food processing, electronics, pharmaceuticals, textiles, and autos. Every sector has distinct objectives and reward systems.
Q. How does the system of incentives operate?
Ans: The incentives are based on the additional production levels that businesses reach. A corporation can obtain larger cash benefits for producing more, which incentivises higher output.
Q. Who can submit an application for the PLI Scheme?
Ans: Sector-specific eligibility requirements may differ, but in general, businesses must exhibit production capability, meet minimum investment requirements, and adhere to quality and safety standards.
Q. How does a business apply for the PLI Plan?
Ans: Businesses who would like to participate in the PLI Scheme must submit an application outlining their capacity for manufacturing, their intended investments, and their anticipated volume of production. Then, applications are assessed using predetermined standards.
Q. What advantages may one anticipate from the PLI Scheme?
Ans: It is anticipated that the PLI Scheme will increase manufacturing output, generate employment, improve exports, draw in foreign investment, and support India’s overall economic expansion.
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