Context:

Government is planning to expand the ambit of Production Linked Incentive Scheme.

PLI scheme

• In order to reduce India’s dependence on China, the government announced a scheme that aims to give companies incentives on incremental sales from products manufactured in domestic units.

The sectors covered

• Initially launched for mobile manufacturing and other electronic components and later expanded to Critical Key Starting materials/Drug Intermediaries and Active Pharmaceutical Ingredients and Manufacturing of Medical Devices Cabinet has approved 10 more sectors.
• Intended benefi ts of the scheme.
• Low import dependency
• Low current account deficit
• More employment
• Boost RBI’s forex reserve
• Stable exchange rate