India’s economy significantly depends on the different production-based sectors.To support their development and increase the revenue, the Central Government introduced the PLI scheme.
This scheme aims to offer domestic manufacturers incentives on gradual sales of products.
Keep reading to learn about the scheme's benefits, objectives, and more.
The PLI scheme or Production Linked Incentive scheme was launched in March 2020 to boost the domestic manufacturing sector.As a part of the Make in India initiative, this scheme offers an incentive to eligible firms on incremental sales for five years.
The Government introduced this scheme to reduce India’s dependence on China and other foreign countries.It supports the labour-intensive sectors and aims to increase the employment ratio in India.
This scheme works to reduce down the import bills and boost up domestic production.However, PLI Yojana invites foreign companies to set up their units in India and encourages domestic enterprises to expand their production units.
The IT Ministry has informed the PLI scheme, which would offer 4%-6% incentives to electronics companies that manufacture mobile phones and electronic components.
Now, let's check which sectors fall under this scheme.This will help understand how the scheme works.
The Government has allowed the PLI scheme for 10 sectors, which are as follows -
Let’s check the objective of this scheme to understand its purpose in detail.
This scheme primarily follows two objectives -
These objectives target foreign investments in cutting-edge technology and core skill sectors, increase exports, and boost the economic scale.It also aims to make India a part of the international supply chain.
However, interested entrepreneurs have to fulfil specific eligibility parameters to make an application for PLI.
Individuals should know that eligibility parameters may differ in the selected sectors.For instance, the PLI scheme for automobile sector eligibility may slightly vary from the one in the electronics sector.
In this regard, checking the official website would be beneficial. Nevertheless, the general eligibility requirements are as follows.
Let’s check the benefits Production Linked Incentive scheme sectors can gain.
The following documents have to be submitted by an individual during the online application.
Apart from the mentioned documents, an applicant must check the details filled under the electronic form. They have to upload the respective papers-
Failing to provide the mentioned documents can lead to application cancellation by the IREDA.
Individuals should know that managing sustainable development and investments in labour-intensive sectors is demanding for the Government.The extended gestation period makes it quite challenging.
Let’s check how to make an application and fill PLI forms.
Individuals should know that different sectors follow a separate application procedure.Here is an example to make an application for the telecom sector.
This is some vital information on the PLI scheme and its function. Individuals should keep a tab on the official website to know the details on incentives.
This practice would allow them to know the latest PLI scheme and terms.
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Disclaimer: This information is added only for informative purposes and collected from different sources across the Internet. Digit Insurance is not promoting or recommending anything here. Please verify the information before making any decisions.
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