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ARTICLE · 21 DECEMBER 2021

Production Linked Incentives PLI In Food Processing: An Uncertain Future

S.S. Rana & Co.
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As the name suggests, the scheme provides incentives, largely to set up and expand on manufacturing units, or to increase production.

IndiaStrategy
Rupin Chopra
Rupin Chopra
Apalka Bareja
Apalka Bareja
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In a bid to boost production and manufacturing, and consequently generate employment within the country, the government has conceptualized and initiated production linked incentives (PLIs) for various industries in India. As the name suggests, the scheme provides incentives, largely to set up and expand on manufacturing units, or to increase production.

The first round of incentives were focused on the consumer electronics sector, as incentives to the tune of 4-6% were offered on incremental sales. It saw the likes of international giants such as Samsung and Foxconn taking interest, as well as domestic players such as Lava and Micromax attempting a comeback. Since April 2020, when the scheme was announced, the additional investments of Rs. 1300 crore were seen alongside 22,000 new jobs. In Q1 of FY22, mobile exports grew by a massive 2.5 times to Rs. 4600 crore and imports dropped by over 80% from Rs. 3200 to just Rs. 600 crore.1

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