Expand PLI scheme to labour-intensive sectors: Parliamentary Standing Committee on Commerce | Current Affairs | Vision IAS
News Today Logo

Expand PLI scheme to labour-intensive sectors: Parliamentary Standing Committee on Commerce

Posted 22 Mar 2025

2 min read

The committee, noting the Production Linked Incentive (PLI) scheme's success in boosting India's manufacturing and exports, has recommended extending it to labor-intensive sectors like chemicals, leather, apparel, and handicrafts.

About PLI Scheme

  • Launched: in 2020, with an outlay of ₹1.97 trillion.
    • It is aligned with Make in India initiative which aims to transforming India into a Global Manufacturing Hub.
  • Objective: To strengthen the manufacturing backbone, reduce reliance on imports, and balance growth with sustainability.
  • Sectors Covered: It covers 14 sectors such as Mobile Manufacturing and Specified Electronic Components, Advanced Chemistry Cell (ACC) Battery, white goods, etc.
  • Incentives: Extend an incentive of 4% to 6% to eligible companies on incremental sales. 
    • Both Domestic and foreign companies registered in India are eligible for incentives.
  • Approach: Follows a performance-driven approach that not only attracts investments from domestic and global players but also encourages businesses to embrace cutting-edge technologies and achieve economies of scale.
Image Shoeing achievement of PLI Scheme

Relevance/Need of PLI Scheme

  • Boost Manufacturing: Paving the way to raise the share of manufacturing in GDP to 25% by 2025 from 17%.
  • Supporting Strategic Sectors: E.g., India has achieved 60% import substitution in telecom products (2024).
  • Other: Enhancing Export Competitiveness, etc. 
  • Tags :
  • Make in India
  • Production Linked Incentive (PLI)
Watch News Today
Subscribe for Premium Features