Focus: GS III: Indian Economy
Why in News?
Recently, the first-ever disbursement has been approved by the empowered Committee in Production Linked Incentive (PLI) scheme for mobile manufacturing under ‘Large-Scale Electronics Manufacturing’ sector.
About PLI scheme for Large-Scale Electronics Manufacturing
- It is mapped to the Union Ministry of Electronics and Information Technology (MEITY).
- The PLI scheme on Large-Scale Electronic Manufacturing, which includes manufacturing of mobile phones and manufacturing of specified electronic components, was approved in March 2020, with a total outlay of Rs 38,645 crores.
- Thirty-two beneficiaries had been approved under the PLI scheme for Large-Scale Electronics Manufacturing, of which 10 (5 global and 5 domestic companies) were approved for mobile manufacturing.
- This PLI scheme has also generated employment of 28,636.
- Over the last 3 years, exports have grown by 139%.
- It is expected to make India a competitive destination for electronics manufacturing.
- Further, it will give a boost to Atmanirbhar Bharat while creating more global champions.
- The scheme is expected to bring in additional production to the tune of Rs 10,69,432 crore and generate employment for 7,00,000 people.
What is a Production Linked Incentive (PLI) scheme?
- A Production-Linked Incentive, or PLI scheme, provides incentives to companies in order to boost domestic manufacturing.
- This is done by the government in an effort to make products more competitively priced, reduce a country’s dependence on imports and generate employment.
- According to experts, the idea of PLI is important as the government cannot continue making investments in these capital intensive sectors as they need longer times for start giving the returns. Instead, what it can do is to invite global companies with adequate capital to set up capacities in India.