Government Schemes in India play a crucial role in solving many socio-economic problems that beset Indian society, and thus their awareness is a must for any concerned citizen. These are launched by the government to address the social and economic welfare of the citizens of this nation.The Union Cabinet chaired by the Prime Minister, has given its approval to introduce the Production-Linked Incentive (PLI) Scheme in the following 10 key sectors for Enhancing India’s Manufacturing Capabilities and Enhancing Exports – Atmanirbhar Bharat.
- Production-Linked Incentive (PLI) Scheme
- Pli scheme for large scale electronic manufacturing
PRODUCTION LINKED INCENTIVES (PLI) SCHEME
The government will extend the production-linked incentive (PLI) scheme to eight more sectors to boost domestic manufacturing.
- PLI Scheme is an outcome- and output-oriented scheme where incentives will be paid only if the manufacturers make the goods.
- This scheme will give cash incentives for five to seven years and all the sunrise and important sectors are proposed to be covered in this.
- The sectors may be automobile, networking products, food processing, advanced chemistry and solar PV manufacturing.
- Sunrise sectors are promising sectors but they may need support in the initial stage.
- Export base can be developed in sectors under PLI scheme.
- There is a growing demand in the world for diversification in supply chains and India can become a major player.
- With the view to make India a manufacturing hub, the government launched the PLI scheme for mobile phones (electronic manufacturing) and it was extended to pharma products and medical equipment sectors.
PLI SCHEME FOR LARGE SCALE ELECTRONICS MANUFACTURING
- The scheme proposes a financial incentive to boost domestic manufacturing and attract large investments in the electronics value chain including electronic components and semiconductor packaging.
- Under the scheme, electronics manufacturing companies will get an incentive of 4 to 6% on incremental sales (over base year) of goods manufactured in India for a period of next 5 years.
- The scheme shall only be applicable for target segments namely mobile phones and specified electronic components.
- The government estimates that with the PLI scheme, domestic value addition for mobile phones is expected to rise to 35-40% by 2025 from the current level of 20-25% and generate additional 8 lakh jobs, both direct and indirect.
- The production of mobile phones in the country has surged eight-times in the last four years from around Rs. 18,900 crore in 2014-15 to Rs 1.7 lakh crore in 2018-19.
In order to test the dynamic knowledge of the candidate, UPSC and other Government Exams will have questions regarding the various schemes overseen by the Government of India. So the candidate is required to know about these schemes. more government schemes here