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ARTICLE · 26 JULY 2022

Focus On Higher Domestic Production: PLI Scheme

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Production Linked Incentive (also known as PLI) is a government initiative launched in March of 2020, to encourage investment from foreign and domestic companies and to create more employment.

IndiaGovernment, Public Sector
Nihit Gupta
Nihit Gupta
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Production Linked Incentive (also known as PLI) is a government initiative launched in March of 2020, to encourage investment from foreign and domestic companies and to create more employment. The idea behind the scheme is relatively simple:

  1. To boost India's manufacturing capabilities
  2. To decrease reliance on imports
  3. To enhance export-oriented production

As the name suggests, the PLI scheme works by providing incentives which are directly linked to the production/manufacturing capabilities of a company. The PLI scheme can be implemented by the concerned ministries/departments and shall be within the overall financial limits prescribed. The final proposals of PLI for individual sectors will be appraised by the Expenditure Finance Committee (EFC) and approved by the Cabinet. Any new sector for PLI will require fresh approval of the Cabinet.

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