Bikky Khosla | 21 Sep, 2021
The production-linked incentive (PLI) scheme for
Mobile Phones and Specified Electronic Components was launched in April
2020, amid the most challenging times of COVID-19 when the Indian economy was
reeling under severe difficulties. The objective was to establish India as a
hub of electronic manufacturing. It immediately proved a huge success,
following which the scheme was further extended to 10 new sectors, and recently
there are some more good news.
Early this month, the Union Cabinet approved
a PLI scheme for the textiles sector, under which incentives worth Rs 10,683
crore will be provided over five years. It is expected that the move will attract
investments of more than Rs 19,000 crore into the sector along with bringing
about additional production turnover of over Rs 3 lakh crore and creating
employment opportunities of over 7.5 lakh people directly.
Similarly, the Centre has approved a
PLI scheme also for promotion of renewable and environment friendly automobiles
such as EVs. The government expects that the over Rs 25,000 crore scheme will give
a push to the nascent sector. In a similar move, the scheme has also been extended
for drones and drone components manufacturing with an allocation of 120 crore
spread over three financial years.
Simply speaking, under the scheme companies
are rewarded for increasing their output by providing them with incentives tied to incremental
investments made during a defined period. Since its launch, the PLI scheme for
Mobile Phones and Specified Electronic Components garnered great results for
the sector, and based on it, the Centre is now gradually extending the scheme to
cover more industries. These steps are welcome.
I invite your opinions.