Bengaluru, NFAPost: The Union Cabinet has given a nod to Production Linked Incentives (PLI) scheme for ten sectors which includes white goods, auto, auto components and battery manufacturing wherein sops worth Rs 1.47 lakh crore would be given over the next five years, as per news source.
An official announcement is expected soon. A bulk of the allocated money will be directed to sectors such as auto, auto components and battery manufacturing, followed by solar photovoltaic cells, according to sources.
Already, a PLI scheme worth Rs 50,000 crore has been announced for electronics and another Rs 10,000 crore for active pharmaceutical ingredients (APIs).
The PLI is part of the government’s plan to make India an attractive manufacturing destination and self-reliant besides helping it emerge as a strong alternative to China. It aims to do this through reduced corporate tax rate of 25%, PLI benefits and phased manufacturing plan (PMP).
The government has already selected 24 sectors to push manufacturing via the PLI and PMP schemes. The sectors include footwear, ceramics and glass, ethanol, ready-to-eat food, aluminium, gym equipment, toys and sporting goods, drones, robotics and electric vehicle equipment. Among these few have been selected as a priority with potential for domestic manufacturing and import substitution through import restrictions and quality control orders such as toys and footwear