With the objectives of making Indian manufacturers globally competitive and making India an integral part of the global supply chain, the Government introduced the Production Linked Incentive (PLI) scheme to boost domestic manufacturing in India, in the three sectors of large-scale electronics manufacturing, medical devices, and pharmaceuticals to begin with.

The idea for this incentive plan is to partly account for some additional costs that Indian producers face due to gaps in infrastructure, power, and logistics. By targeting additional manufacturing capacity and turnover, it also encourages greater investment for addressing export markets with higher competitiveness. The scheme is set to be in force for 5 years, bringing manufacturing to US$ 520 billion in these sectors.

Powering the Indian Manufacturing Sector.