What is the PLI Scheme? Why was it introduced?
Production-Linked Incentive or PLI scheme is a scheme that aims
to give companies incentives on incremental sales (over FY 2019-20)
from products manufactured in domestic units. The scheme invites
foreign companies to set up units in India, however, it also aims
to encourage local companies to set up or expand existing
manufacturing units and also to generate more employment and cut
down the country's reliance on imports from other
countries.
Background of PLI Scheme
As a part of the National Policy on Electronics, on April 1,
2020, the IT Ministry had notified a scheme which would give
incentives of 4-6% to 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. According to
the scheme, companies that make mobile phones which sell for INR
15,000 or
