Production Linked Incentive Scheme

Why in news?

• The government aims to expand the ambit of the production-linked incentive (PLI) scheme to include as many as ten more sectors such as food processing and textiles other than the already included mobile phones, allied equipment, pharmaceutical ingredients and medical devices.

About PLI Scheme:

• In order to boost domestic manufacturing and cut down on import bills, the central government in March this year introduced a scheme that aims to give companies incentives on incremental sales from products manufactured in domestic units.
• Apart from inviting foreign companies to set shop in India, the scheme also aims to encourage local companies to set up or expand existing manufacturing units.
• So far, the scheme has been rolled out for mobile and allied equipment as well as pharmaceutical ingredients and medical devices manufacturing.
• These sectors are labour intensive and are likely, and the hope is that they would create new jobs for the ballooning employable workforce of India.
• As a part of the PLI scheme for mobile and electronic equipment manufacturing, an incentive of 4-6 per cent is planned for electronics companies which manufacture mobile phones and other electronic components such as transistors, diodes, thyristors, resistors, capacitors and nano-electronic components such as micro electromechanical systems.
• Similarly under PLI for   pharmaceutical ingredients and medical devices government will pay the companies it selects for the scheme a specific proportion of their turnover from making and selling the bulk drugs or medical devices as an incentive over the next few years.
• The amount of the incentive would decrease as the years go by.

PRELIMS QUESTION

”Nirvik Scheme” recently in news is primarily aimed at:
(a)Steel manufacturers
(b)Exporting Firms
(c)Food processing Sector
(d)Micro and Small Enterprises

Answer to prelims question