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
Laptop/ Notebooks
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)
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
Mozzarella Cheese
Organic eggs and poultry meat
Solar PV manufacturing  Solar PVs
White Goods Air conditioners
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