Production linked incentive (PLI) scheme

Subject: Government schemes

Context:

Global electronics equipment manufacturers had approached the MeitY to avail benefits under the government’s Production-Linked Incentive (PLI) scheme.

Concept:

• The scheme proposes production linked incentive to boost domestic manufacturing and attract large investments in mobile phone manufacturing and specified electronic components including Assembly, Testing, Marking and Packaging (ATMP) units.
• The Scheme shall extend an incentive of 4% to 6% on incremental sales (over base year) of goods manufactured in India and covered under target segments, to eligible companies, for a period of five years subsequent to the base year as defined.
• The proposed scheme is likely to benefit 5-6 major global players and few domestic champions, in the field of mobile manufacturing and Specified Electronics Components and bring in large scale electronics manufacturing in India.
• The scheme has a direct employment generation potential of over 2,00,000 jobs over 5 years.