Government may increase allocation for PLI schemes in the next Budget to boost exports
The Government of India is likely to increase the allocation for the ongoing Production Linked Incentive (PLI) schemes by around 20-30% in the next budget to spur the domestic manufacturing sector and boost exports, as reported by the Economic Times. It was further reported that electronic manufacturing and IT hardware have seen a high impact because of the PLI scheme, and therefore it is on the agenda for an increase in allocation.
The PLI scheme currently covers 14 key sectors, and some new sectors are also expected to be included under the scheme. Under the PLI scheme, eligible players receive incentives ranging from 4-6% of production value for five years if they achieve their investment and production value target for each year.
Around US$ 24 billion (Rs. 1.97 trillion) was announced for the PLI schemes by the Finance Minister, Ms. Nirmala Sitharaman in her budget proposals last year. This incentive amount was for a five-year period beginning FY22 and this is likely to be raised.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.