scheme for Promoting Telecom &

Networking Products Manufacturing in

India

Production Linked Incentive (PLI)

INTRODUCTION
• The Production Linked Incentive (PLI) Schemes have led to a significant
increase in production, employment generation, economic growth and
exports in the country. Addressing a press conference in New Delhi today,
Shri Rajesh Kumar Singh, Secretary, DPIIT said that due to PLI Schemes,
there was a significant increase of 76% in FDI in the Manufacturing sector
in FY 2021-22 (USD 21.34 billion) compared to previous FY 2020-21 (USD
12.09 billion).
• The PLI schemes as envisioned by the Prime Minister, Shri Narendra Modi
with the objective of making India 'AatmaNirbhar' is built on the foundation
of 14 sectors with an incentive outlay of Rs. 1.97 lakh crore (about US$ 26
billion) to strengthen their production capabilities and help create global
champions.
BENEFITS

• Boost to Manufacturing: It encourages domestic manufacturing in

key sectors by providing financial incentives to companies that meet
specific production targets.
• Attracting Investments: PLI schemes attract both domestic and
foreign investments, leading to the establishment of new
manufacturing units and expansion of existing ones.
• Employment Generation: Increased manufacturing activities create
job opportunities, addressing
• Competitiveness: It enhances the competitiveness of Indian manufacturers
by incentivizing them to produce high-quality goods at a lower cost.
• Export Promotion: Many PLI schemes are export-oriented, helping Indian
companies penetrate international markets and earn foreign exchange.
• Technological Advancement: To meet production targets, companies often
invest in technology upgrades and innovation, leading to advancements in
the sector.
• Reduction in Imports: By promoting domestic manufacturing, India can
reduce its dependence on imports, improving self-sufficiency and trade
balance.
• Economic Growth: The growth of manufacturing industries
contributes to overall economic growth and GDP expansion.
• Eco-friendly Practices: Some PLI schemes encourage the adoption of
eco-friendly technologies and sustainable practices, reducing
environmental impact.
• Global Integration: It aligns with India's goal of integrating into
global supply chains and becoming a manufacturing hub.
Eligibility
• Global companies: Global Manufacturing Revenue should be more
than Rs. 10,000 Crore in the base year. In case of Group companies of
Applicant, whose revenues for the base year have not been
consolidated in INR, the revenue in the respective currency shall be
converted to INR at an average of currency exchange rates as on April
01, 2019 and March 31, 2020.
• Domestic companies: Global Manufacturing Revenue should be more
than Rs. 250 Crore in the base year.
• MSMEs: Global Manufacturing Revenue should be more than Rs. 10
Crore in the base year.