Production-linked Incentive (PLI) Scheme

The government is considering an extension of the production-linked incentive (PLI) scheme to 7-8 more sectors to promote domestic manufacturing.
The government recently announced the PLI scheme for mobile phones, pharma products, and medical equipment sector to make India a manufacturing hub
It is a part of the National Policy on Electronics. It proposes a financial incentive to boost domestic manufacturing and attract large investments in the electronics value chain.
The scheme shall extend an incentive of 4% to 6% on incremental sales (over a base year) of goods manufactured in India and covered under target segments, to eligible companies, for a period of five (5) years with financial year (FY) 2019-20 considered as the base year for calculation of incentives.
According to the scheme, companies that make mobile phones which sell for Rs 15,000 or more will get an incentive of up to 6 per cent on incremental sales of all such mobile phones made in India.
In the same category, companies which are owned by Indian nationals and make such mobile phones, the incentive has been kept at Rs 200 crore for the next four years.