{"id":31391,"date":"2025-03-22T01:54:58","date_gmt":"2025-03-21T20:24:58","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=31391"},"modified":"2025-04-16T11:35:43","modified_gmt":"2025-04-16T06:05:43","slug":"production-linked-incentive-pli-scheme","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/production-linked-incentive-pli-scheme\/","title":{"rendered":"Production Linked Incentive (PLI) Scheme"},"content":{"rendered":"<h2>Production Linked Incentive (PLI) Scheme News<\/h2>\n<p>India\u2019s $23 billion PLI scheme to rival China factories to lapse after it disappoints.<\/p>\n<h2>Why in the News?<\/h2>\n<ul>\n<li>The <strong>$23 billion Production-Linked Incentive (PLI) scheme<\/strong>, launched in <strong>2020<\/strong> to boost domestic manufacturing and <strong>reduce dependence on China<\/strong>, is set to lapse as many firms failed to meet production targets.<\/li>\n<li>The scheme was aimed at <strong>increasing manufacturing\u2019s share in India\u2019s GDP to 25% by 2025<\/strong>, but it has <strong>declined from 15.4% to 14.3%<\/strong> instead.<\/li>\n<li><strong>Only 37% of the expected production target was achieved<\/strong>, with <strong>$151.93 billion worth of goods<\/strong> manufactured by October 2024.<\/li>\n<li><strong>Delays in subsidy payouts<\/strong> and <strong>excessive bureaucracy<\/strong> hampered the scheme\u2019s effectiveness.<\/li>\n<\/ul>\n<h2>About the PLI Scheme<\/h2>\n<ul>\n<li>The <strong>Production Linked Incentive (PLI) scheme<\/strong> was launched in <strong>March 2020<\/strong> to <strong>boost domestic manufacturing<\/strong>, <strong>increase import substitution<\/strong>, and <strong>generate employment<\/strong>.<\/li>\n<li>The scheme <strong>initially targeted three industries<\/strong>: Mobile and Allied Component Manufacturing, Electrical Component Manufacturing and Medical devices.<\/li>\n<li>Later, it was <strong>expanded to 14 key sectors<\/strong>.<\/li>\n<li>Under this scheme, <strong>Domestic and Foreign companies<\/strong> receive <strong>financial incentives<\/strong> based on a <strong>percentage of their incremental revenue<\/strong> for <strong>up to five years<\/strong>.<\/li>\n<\/ul>\n<h2>PLI Scheme Performance\u00a0<\/h2>\n<ul>\n<li><strong>Mobile Phones: Major success<\/strong> \u2013 Production rose <strong>63% from 2020-24<\/strong>, reaching <strong>$49 billion<\/strong>. <strong>Apple and Samsung<\/strong> dominate exports.<\/li>\n<li><strong>Pharmaceuticals: <\/strong>Strong growth \u2013 Exports nearly doubled to <strong>$27.85 billion<\/strong> (2023-24).<\/li>\n<li><strong>Food Processing:<\/strong> Exceeded production targets, but some firms missed subsidy eligibility due to investment non-compliance.<\/li>\n<li><strong>Steel &amp; Solar Panels: <\/strong>Lagging sectors \u2013 <strong>14 out of 58 <\/strong>approved steel projects withdrawn, <strong>8 out of 12 solar firms<\/strong> unlikely to meet targets.<\/li>\n<li><strong>Textiles &amp; IT Hardware: Slow growth<\/strong>, struggling to compete with <strong>China&#8217;s lower production costs<\/strong>.<\/li>\n<li><strong>94% <\/strong>of the<strong> $620 million <\/strong>incentives disbursed (April-Oct 2024) went to pharmaceuticals and mobile phones, highlighting <strong>uneven sectoral success<\/strong>.<\/li>\n<\/ul>\n<h2>Production Linked Incentive (PLI) Scheme FAQs<\/h2>\n<p><strong>Q1. <\/strong>What is the Production Linked Incentive (PLI) Scheme?<\/p>\n<p><strong>Ans.<\/strong> The PLI scheme is a government initiative that provides financial incentives to companies based on their production output in specific sectors to boost domestic manufacturing and reduce import dependency.<\/p>\n<p><strong>Q2. <\/strong>When was the PLI scheme launched?<\/p>\n<p><strong>Ans.<\/strong> The PLI scheme was first announced in March 2020 as part of the Atmanirbhar Bharat initiative.<\/p>\n<p><strong>Q3. <\/strong>How does the PLI scheme work?<\/p>\n<p><strong>Ans.<\/strong> Under the scheme, eligible companies receive financial incentives based on incremental sales of manufactured goods over a base year. The incentive percentage varies by sector.<\/p>\n<p><strong>Source: <\/strong><a href=\"https:\/\/www.thehindu.com\/business\/Economy\/indias-23-billion-pli-scheme-to-rival-china-factories-to-lapse-after-it-disappoints\/article69357682.ece\" target=\"_blank\" rel=\"nofollow noopener\">TH<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Production Linked Incentive (PLI) scheme was launched in March 2020 to boost domestic manufacturing, increase import substitution, and generate employment.<\/p>\n","protected":false},"author":5,"featured_media":31392,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-31391","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/31391","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=31391"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/31391\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/31392"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=31391"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=31391"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=31391"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}