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.

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.