Production Linked Incentive, or PLI, scheme of the

Government of India The Government of India (ISO: ; often abbreviated as GoI), known as the Union Government or Central Government but often simply as the Centre, is the national government of the Republic of India, a federal democracy located in South Asia, ...

is a form of performance-linked incentive to give companies incentives on incremental sales from products manufactured in domestic units. It is aimed at boosting the

manufacturing sector In macroeconomics, the secondary sector of the economy is an economic sector in the three-sector theory that describes the role of manufacturing. It encompasses industries that produce a finished, usable product or are involved in constructio ...

and to reduce imports. Objective of these schemes entail

Make in India Make in India is an initiative by the Government of India to create and encourage companies to develop, manufacture and assemble products made in India and incentivize dedicated investments into manufacturing. The policy approach was to crea ...

, incentivising foreign manufacturers to start production in India and incentivise domestic manufacturers to expand their production and exports.Explained: What is PLI scheme, and which sectors will be under it?
Indian Express, 8 Nov 2020. The GoI has introduced Rs 1.97 lakh cr (US$ 28 b) PLI schemes for 13 sectors. For example one of these sectors is the

Automotive industry in India The automotive industry in India is the fourth-largest in the world as per 2021 statistics. In 2022, India became fourth largest country in the world by valuation of automotive industry. As of 2020, India is the 5th largest automobile market i ...

, for which GoI introduced 3 schemes, a Rs. 26,000 cr (US$3.61 b) scheme for production of electric vehicles and hydrogen fuel vehicles (PEVHV), the Rs 18,000 crore (US$2.5 b) ''"Advanced Chemistry Cell"'' (ACC) scheme for new generation advance storage technologies for the electric vehicles, and Rs 10,000 crore (US$1.4 b) ''"Faster Adaption of Manufacturing of Electric Vehicles"'' (FAME) scheme to go green by expediting production of more electronic vehicles and replacement of other types of existing vehicles with the greener vehicles. The PLI scheme to boost automotive sector to encourage the production of electric vehicles and hydrogen fuel vehicles will also generate 750,000 direct jobs in auto sector. These schemes will reduce pollution, climate change, carbon footprint, reduce oil and fuel import bill through domestic alternative substitution, boost job creation and economy.India doesn’t need speed breakers. Modi govt right to help automobile, telecom
The Print, 17 September, 2021.

Society of Indian Automobile Manufacturers The automotive industry in India is the fourth-largest in the world as per 2021 statistics. In 2022, India became fourth largest country in the world by valuation of automotive industry. As of 2020, India is the 5th largest automobile market in ...

welcomed this as it will enhance the competitiveness and boost growth.Cabinet Clears ₹ 26,000 Crore Scheme For Auto Sector To Boost Production
NDTV, September 15, 2021.

List of industries

The government has introduced the scheme for several industries which include:'Production Linked Incentive (PLI) Schemes in India', ''Government of India''
/ref> # Auto components # Automobile # Aviation # Chemicals # Electronic systems # Food processing # Medical devices # Metals & mining # Pharmaceuticals # Renewable energy # Telecom # Textiles & apparel # White goods

References

{{Reflist Economy of India Government programmes of India Modi administration initiatives