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Details about Production linked Incentive Scheme | UPSC

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UPSC Current Affairs:
Production linked scheme

UPSC Syllabus: Mains – GS Paper III- Indian Economy

Details about PLI Scheme

Objective: Boost domestic manufacturing and attract large investments in domestic manufacturing

Incentives: Extend an incentive of 4% to 7% on incremental sales (over base year of 2019-20) of goods manufactured in India for a period of 5 years.

Eligibility: Incentives are provided under the scheme to only those companies which cross the threshold level in terms of incremental sale of Manufactured Goods and Incremental investment over the base year.

Tenure of Scheme: 5 years

For MSMEs, one percent (1%) higher incentive is proposed in year 1, year 2 and year 3.

Minimum Investment threshold for MSME has been kept at Rs. 10 Crores and for others at Rs. 100


Once qualified, the investor will be incentivized up to 20 times of minimum investment threshold

enabling them to utilize their unused capacity.

The Scheme will be operational from 1st April 2021


This scheme will lead to incremental production of around Rs 2.4 Lakh Crores with exports of around Rs 2 Lakh

Crores over 5 years. It is expected that scheme will bring investment of more than Rs 3,000 crore and generate

huge direct and indirect employment and taxes both.


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