Central government Preparations are being made to make major changes in the Production Linked Incentive (PLI) scheme. Under this, new sectors will be added to it and benefits for MSMEs (Micro, Small and Medium Enterprises) will be increased. According to media reports, as part of the reform in the PLI scheme, the government can simplify the rules for raising funds. Along with adding new sectors, more benefits can be given to MSMEs in areas with more labor.
Government’s emphasis on manufacturing
The government’s entire focus is on increasing manufacturing. Incentives for research and development (R&D) will be added to the PLI. Reports said that the government has started accepting applications for giving incentives on a quarterly basis. Earlier, funds were released on an annual basis. Toy, furniture and textile sectors may soon be covered under this scheme. More jobs are likely to be created in these sectors.
Technical textiles may also be included
The government can also bring man-made fibers (MMF) under the PLI scheme. Apart from this, technical textiles can also be included in it to cover some cotton. These can be announced in the upcoming budget. The size of the PLI scheme is Rs 1.97 lakh crore (about $ 26 billion), out of which only Rs 9,700 crore has been distributed till March 2024. A total incentive of Rs 6,800 crore was provided in various sectors in FY 24.
The PLI scheme was launched in March 2020
By December 2023, Rs 1.07 lakh crore has been invested by the companies that have received the benefit of PLI. These have generated sales of more than Rs 9 lakh crore and created more than 7 lakh employment opportunities. The PLI scheme was launched in March 2020. At that time this scheme was started for raw materials of the pharma industry, medical devices and large-scale electronic manufacturing. In November 2020, 10 other sectors were included in it. In September 2021, the drone sector was also added to it.
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