{"id":39624,"date":"2025-03-22T19:09:59","date_gmt":"2025-03-22T13:39:59","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=39624"},"modified":"2025-03-22T19:10:01","modified_gmt":"2025-03-22T13:40:01","slug":"production-linked-incentive-scheme","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/22-03-2025\/production-linked-incentive-scheme","title":{"rendered":"Production Linked Incentive Scheme"},"content":{"rendered":"\n

Syllabus: GS3\/ Economy & Development<\/strong><\/p>\n\n\n\n

In News<\/strong><\/h2>\n\n\n\n
    \n
  • The Government has decided not to extend the PLI Scheme beyond the existing 14 sectors.\n
      \n
    • Despite initial success in some areas, the scheme underperformed in others and saw delays in incentive payouts.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n

      More About the News<\/strong><\/h2>\n\n\n\n
        \n
      • Out of the $23 billion allocated<\/strong>, only $1.73 billion (8%) has been disbursed as of October 2024.<\/li>\n\n\n\n
      • $151.93 billion worth of goods have been produced under the scheme\u2014just 37% of the original target. Firms like Foxconn, Reliance, and Adani faced delays, unmet targets, or non-compliance.<\/li>\n\n\n\n
      • Hence, the government has declined requests to extend production deadlines or add new sectors to the scheme.<\/li>\n<\/ul>\n\n\n\n

        About the PLI Scheme<\/strong><\/h2>\n\n\n\n
          \n
        • Lauch: <\/strong>In 2020 under the Ministry of Commerce & Industry <\/strong>with an outlay of \u20b91.97 lakh crore.<\/li>\n\n\n\n
        • Sectors Included: <\/strong>It covers 14 sectors (Mobile, Pharma, Auto, ACC Battery, Telecom, White Goods, Solar, etc.)<\/li>\n\n\n\n
        • Objectives:\u00a0 <\/strong>It offers incentives to eligible firms on incremental sales for five years as part of the Make in India initiative.<\/strong>\n
            \n
          • It aims to reduce India\u2019s dependence on foreign countries like China and increase employment in labor-intensive sectors.<\/li>\n\n\n\n
          • Raise manufacturing\u2019s share in GDP to 25% by 2025<\/li>\n<\/ul>\n<\/li>\n\n\n\n
          • Incentive Mechanism:<\/strong> 4\u20136% on incremental sales over a base year.\n
              \n
            • Applicable to both domestic and foreign companies registered in India.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n

              Benefits of PLI Scheme<\/strong><\/h2>\n\n\n\n
                \n
              • Electronics Success:<\/strong> India produced $49 billion worth of mobiles in FY 2023\u201324; Apple now manufactures high-end models in India.<\/li>\n\n\n\n
              • Pharmaceutical Growth:<\/strong> Exports nearly doubled to $27.85 billion from a decade ago.<\/li>\n\n\n\n
              • Boosted FDI inflow<\/strong>, helped develop core industries, and supported India\u2019s \u2018China Plus One\u2019 strategy.<\/li>\n\n\n\n
              • Encouraged production in strategic sectors<\/strong> (e.g., semiconductors, solar modules).<\/li>\n<\/ul>\n\n\n
                \n
                \"Benefits-of-PLI-Scheme\"<\/figure>\n<\/div>\n\n\n

                Issues and Concerns<\/strong><\/h2>\n\n\n\n
                  \n
                • Low Disbursement:<\/strong> Only 8% of incentives disbursed despite meeting targets.<\/li>\n\n\n\n
                • Delays<\/strong> <\/strong>in Subsidies:<\/strong> They are not released on time, eventually affecting cash flow.<\/li>\n\n\n\n
                • Unmet Targets:<\/strong>\u00a0 Many firms failed to initiate or scale up production.<\/li>\n\n\n\n
                • Red Tapism:<\/strong> Bureaucratic hurdles and rigid compliance conditions.<\/li>\n\n\n\n
                • No GDP Boost:<\/strong> Manufacturing share fell from 15.4% to 14.3% (2020\u20132024).<\/li>\n<\/ul>\n\n\n\n

                  Source: TH<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

                  The Government has decided not to extend the PLI Scheme beyond the existing 14 sectors.<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-39624","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/39624","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=39624"}],"version-history":[{"count":1,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/39624\/revisions"}],"predecessor-version":[{"id":39626,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/39624\/revisions\/39626"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=39624"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=39624"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=39624"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}