PLI scheme is said to nurture manufacturing giants in India

CIOReviewIndia Team | Monday, 16 November 2020, 04:39 IST

PLI scheme is said to nurture manufacturing giants in India

Manufacturing capabilities have evolved significantly in the last two centuries and have been the backbone of all developed and developing nations. Furthermore, it has also significantly contributed to  employment both in terms of skilled and unskilled labour force. 

 

With the ‘Atma Nirbhar Bharat’ and ‘Make In India' movement, India offers an attractive domestic market. where a large population is the educated and earning segment. It also has a strong institutional framework which allows for a smooth functioning of the industry.

For a limited number of eligible anchor entities in each of the selected sectors who will invest in technology, plant & machinery, as well as in R&D, the Production Linked Incentive (PLI) Scheme is designed to incentivise incremental production. 

Moreover, by the creation of a widespread supplier base for the anchor units established under the scheme, the scheme will also have beneficial spillover effects. While to attract investments in areas of strength and to strategically enter certain segments of global value chains (GVCs), the key benefit of the PLI Scheme is that it can be implemented in a very targeted manner . Thus bringing size and scale in key sectors and nurturing and creating global champions.

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