Government selects 24 companies under PLI scheme for white good. How PLI scheme is a game changer for the Indian manufacturing sector ?

The Production Linked Incentive (PLI) scheme is an initiative by the Government of India aimed at boosting domestic manufacturing, reducing imports, and promoting exports by providing financial incentives to companies. Keeping in view India’s vision of becoming ‘Atmanirbhar’, Production Linked Incentive (PLI) Schemes cover 14 key sectors with an outlay of Rs. 1.97 lakh crore (over US$26 billion) to enhance India’s Manufacturing capabilities and Exports.

Key Features of the PLI Scheme:

1. Objective: To encourage companies to manufacture in India by offering monetary incentives based on their production and sales performance.
2. Sectors Covered: It targets key sectors like electronics, pharmaceuticals, telecom, automobiles, textiles, medical devices, solar panels, and more, promoting self-reliance (Aatmanirbhar Bharat).
3. Incentives: Companies receive incentives ranging from 4% to 6% of their incremental sales (over a base year).
4. Tenure: Most schemes are designed for 5 years and incentivize companies based on yearly performance.
5. Goals:
   • Boost domestic production and create jobs.
   • Attract foreign investment.
   • Reduce dependency on imports.
   • Strengthen India’s position in global supply chains.

Key Sectors

there are total 14 sector selected
(i) Mobile Manufacturing and Specified Electronic Components,
(ii) Critical Key Starting Materials/Drug Intermediaries & Active Pharmaceutical Ingredients,
(iii) Manufacturing of Medical Devices
(iv) Automobiles and Auto Components,
(v) Pharmaceuticals Drugs,
(vi) Specialty Steel,
(vii) Telecom & Networking Products,
(viii) Electronic/Technology Products,
(ix) White Goods (ACs and LEDs),
(x) Food Products,
(xi) Textile Products: MMF segment and technical textiles,
(xii) High efficiency solar PV modules,
(xiii) Advanced Chemistry Cell (ACC) Battery, and
(xiv) Drones and Drone Components.

Recently held DPIT meeting, selected 24 companies in the Third round of PLI scheme under white goods. Those selected includes Hindalco Industries Ltd,
LG Electronics India Pvt. Ltd, Voltas Ltd and Blue Star Climatech Ltd.

Although, such schemes will be a booster for the manufacturing sector but the proper Audit should be done on selected companies , so the purpose of this scheme to make India Self Reliance can be met and generate employment in manufacture sector.