The government on Wednesday approved a Production-Linked Incentive (PLI) scheme for ten key sectors, including telecom, automobiles and pharmaceuticals, taking the total outlay for such incentives to nearly Rs 2 lakh crore over a five-year period.
The scheme will help encourage domestic manufacturing, reduce imports and generate employment as the government works to bolster economic growth. The financial outlay for the new scheme will be Rs 1,45,980 crore.
The five-year PLI scheme, which aims at making Indian manufacturers’ competitive globally, was approved by the Union Cabinet, Information and Broadcasting Minister Prakash Javadekar told reporters here.
Elaborating on the decision, Finance Minister Nirmala Sitharaman said the PLI scheme will provide great incentives for manufacturers and help the country move towards the objective of ‘Aatmanirbhar Bharat’ (Self-Reliant India).
The Cabinet also decided to extend the viability gap funding scheme to social infrastructure sectors. The scheme is currently available only for projects concerning economic infrastructure.
“The Cabinet has taken two very important decisions… both of which, if you ask me at a time like this, are going to give a right impetus to the economy, because we are looking at Aatmanirbharta,” Sitharaman said, adding that they will help in making India part of the global value chain.
The PLI scheme, she said, will also provide encouragement to the critical sunrise sectors by ensuring necessary support from the government in addition to creating jobs and linking India to global value chain.