PLI Scheme

PLI Scheme

News: The Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved the Production Linked Incentive Scheme 2.0 for IT Hardware with a budgetary outlay of Rs 17,000 crore.

 Electronics manufacturing in India has witnessed consistent growth with a 17 per cent compound annual growth rate (CAGR) in the last 8 years to cross a major benchmark in production -- USD 105 billion (about Rs 9 lakh crore) -- this year.
 PLI Scheme 2.0 for IT hardware covers laptops, tablets, allin-one PCs, servers and ultra-small form factor devices.

What is PLI Scheme?
 PLI scheme is an initiative that provides incentives to domestic industries to boost local production. When that happens, specifically tailored products emerge that satisfy a selected niche of target audience. Domestic businesses also help in cutting down import bills.
 Targeted industries - Mobile and allied Component Manufacturing, Electrical Component Manufacturing, and Medical Devices, Automobile and auto components, Electronics and IT hardware, Telecom, Pharmaceuticals, Solar modules, Metals and mining, Textiles and apparel, White goods, Drones, Advanced chemistry cell batteriesm other sectors as well.

How do the incentives work?
 They are calculated based on incremental sales. Range from 1% to 20% depending on the industry.
 In some sectors such as advanced chemistry cell batteries, textile products and the drone industry, the incentive is on the basis of sales, performance and local value addition done over the period of five years. 

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