New Delhi, November 11: Amidst the ongoing economic slowdown, the central government headed by Prime Minister Narendra announced a major Diwali bonanza for various sectors on Wednesday. The Union Cabinet has finalised the decision to implement the Performance Linked Incentive (PLI) scheme, which will grant benefits to the tune of Rs 1.46 lakh crore to 10 sectors. IMF Chief Calls Upon Policymakers to Roll Out More Financial Stimulus to Boost Recovery.
The scheme is intended to give an impetus to India's manufacturing, by providing subsidies and incentives to sectors which excel in their performance. The PLI would be implemented over a five year period.
"The Union Cabinet has approved PLI scheme for ten key sectors for enhancing India’s manufacturing capabilities and enhancing exports; the scheme will make Indian manufacturers globally competitive, attract investment and enhance exports," Union Minister Prakash Javadekar said, following the Cabinet's decision.
The sector that will benefit the most due to the PLI scheme is automobile, followed by food processing, pharmaceutical, advance-cell batter and white goods, reports citing the Cabinet decision said.
Details About The PLI Scheme
CNBC-TV18 newsbreak confirmed, Cabinet approves PLI for 10 sectors pic.twitter.com/b8qMwNGGwp
— CNBC-TV18 (@CNBCTV18Live) November 11, 2020
Reports claimed that the government has asked different Ministries to expedite the implementation of PLI scheme. The Ministries are expected to submit their feedback to the government within a month, reported CNBC-TV18.
The report further claimed that the government is targeting a roll out of PLI schemes for four key sectors - auto, auto parts, advance-cell battery and food processing by end of the current fiscal 2020-21.
The package comes months after the Centre rolled out a set of schemes which were to act as a Rs 20 lakh crore economic stimulus. The PLI scheme is being seen in continuation of the measures which the Modi government has enacted to resurrect the economy in aftermath of the COVID-19 pandemic jolt.