India launches PLI scheme to boost its manufacturing sector
The Indian government today signed off on a production linked incentive scheme to encourage local as well as foreign enterprises to invest in the manufacturing sector in India. The schemes are designed to remunerate manufacturers for incremental output and rewards them for increasing the production of key goods in India. The government aims to disburse close to USD 20 Billion to eligible manufacturers who sign up under the scheme and increase their manufacturing throughput from India.
The eligible sectors and product lines are as under :
| Sector | Product Lines |
| Advance Chemistry Cell (ACC) Battery Manufacturing | ACC Batteries |
| Electronic/Technology Products | Semiconductors Displays Laptop/ Notebooks Servers IoT Devices Specified Computer Hardware |
| Automobile and Auto Components | Automobile and Auto Components |
| Pharmaceuticals | Biopharmaceuticals Complex generic drugs Patented drugs or drugs nearing patent expiry Cell based or gene therapy products Orphan drugs Special empty capsules Complex excipients |
| Category 2 Active Pharma Ingredients (APIs) /Key Starting Materials (KSMs) and /Drug Intermediaries (Dls) Category 3 Repurposed Drugs Auto-immune drugs, Anti-cancer drugs, Anti diabetic drugs, Anti Infective drugs, Cardiovascular drugs, Psychotropic drugs and Anti-Retroviral drugs In-vitro Diagnostic Devices(IVDs) Phytopharmaceuticals Other drugs not manufactured in India Other drugs as approved |
|
| Telecom Products | Core Transmission Equipment 4G/5G, Next Generation Radio Access Network and Wireless Equipment Access & Customer Premises Equipment (CPE), Internet of Things (IoT) Access Devices and Other Wireless Equipment Enterprise equipment: Switches, Routers |
| Textiles | Man-Made Fiber Segment Technical Textiles |
| Food Processing | Ready to Eat / Ready to Cook (RTE/ RTC) Marine Products Fruits & Vegetables Honey Ghee Mozzarella Cheese Organic eggs and poultry meat |
| Solar PV manufacturing | Solar PVs |
| White Goods | Air conditioners LED |
| Steel Products | Coated Steel High Strength Steel Steel Rails Ally Steel Bars & Rods |
Similar schemes for mobile phone/electronic manufacturers and pharma companies have already yielded significant investments in the respective sectors. This new program aims to extend these returns to the aforementioned sectors/goods as well