India’s Top PSUs 2022

34 Overview of the Scheme The Ministry of Finance is critical and important ministry within the Government of India which serves as the treasurer of India. It is engaged in the financial matters affecting the economy and enduring country’s financial stability. The finance ministry announced an outlay of approx. INR 2 trillion for the Production Linked Incentive (PLI) Schemes across 24 key sectors, to create national manufacturing champions and generate 60 lakh new jobs. Need for the Initiative: During COVID-19 pandemic, it was clearly visible that global supply chain of many sectors was highly dependent on China. The disruption in supply chain impacted majority of sectors and hence there was a need for de-risking of global supply chain. Ministry of Finance understood these challenges, coupled with providing fiscal stimulus for corporate sector emerging from pandemic came up with PLI scheme. The scheme incentivizes companies on incremental sales who invests and manufacture in India. Key Objectives of Production Linked Incentive: The PLI scheme was introduced to enhance domestic manufacturing capabilities, reduce reliance on imports together with generating local employment. Sectors such as food processing, telecom, pharmaceuticals, electronics, textiles, speciality steel, automobiles and auto components, solar photovoltaic modules, white goods namely air conditioners and LEDs among others are included under the PLI scheme. Incremental investments in these sectors would assist India becoming globally competitive and self-sufficient. The main aim of this scheme was to invite investments from both local and global companies to establish manufacturing units in India. Besides attracting investments, creating economies of scale as well as integration with global supply chain were other critical objectives. The Ministry introduced the PLI scheme in tandem with Atmanirbhar Bharat campaign. Production Linked Incentive Scheme Ministry of Finance Dun & Bradstreet