PLI scheme: The Union Cabinet on Wednesday approved spending Rs 2 lakh crore on production-linked incentives(PLI scheme) to boost domestic manufacturing in 10 sectors.


“This move will enhance India’s manufacturing capabilities,” said Union minister Prakash Javadekar while announcing the decision. “The scheme will make Indian manufacturers globally competitive, attract investment and enhance exports,” he further added.


The 10 key sectors that will get the benefit of production-linked incentives include automobiles and auto components, pharmaceuticals drugs, specialty steel, capital goods, technology products, white goods (ACs and LEDs), telecom, and networking products, textiles, high-efficiency solar PV modules, and advanced battery cells.


To boost growth in the private sector, the central government earlier set up an empowered group of secretaries under the cabinet secretary Rajiv Gauba. The government thinks tank NITI Aayog identified 10 sectors as key sectors which will help attract investments at a time global supply chains are impacted and in the long run help shore up revenue.

“The Prime Minister’s clarion call for an ‘AatmaNirbhar Bharat’ envisages policies for the promotion of an efficient, equitable, and resilient manufacturing sector in the country. Growth in production and exports of industrial goods will greatly expose the Indian industry to foreign competition and ideas, which will help in improving its capabilities to innovate further,” the statement said.

“Promotion of the manufacturing sector and the creation of a conducive manufacturing ecosystem will not only enable integration with global supply chains but also establish backward linkages with the MSME sector in the country. It will lead to overall growth in the economy and create huge employment opportunities,” it added.

10 sectors to benefit from PLI scheme

1) Advance Chemistry Cell (ACC) Battery

2) Electronic/Technology Products

3) Automobiles & Auto Components

4) Pharmaceuticals drugs

5) Telecom & Networking Products

6) Textile Products: MMF segment and technical textiles

7) Food Products

8) High-Efficiency Solar PV Modules

9) White Goods (ACs & LED)

10) Speciality Steel

The above-mentioned sectors will be in addition to the already notified PLI schemes in the following sectors: Mobile Manufacturing and Specified Electronic Components, Critical Key Starting materials/Drug Intermediaries and Active Pharmaceutical Ingredients, Manufacturing of Medical Devices.


The critical sunrise sector will get the necessary support from the government through PLI scheme, said finance minister Nirmala Sitharman. Financial support aimed at bringing investments into the country, and make production in the country attractive, the finance minister added. The final proposal of PLI scheme for individual sectors will be approved by an empowered finance committee and Union cabinet. The concerned departments and minister will start implementing schemes immediately, Sitharaman added.