The Union Cabinet approved the Production Linked Incentive (PLI) Scheme for the pharmaceuticals and IT hardware sectors, entailing an outlay of ₹15,000 crore and ₹7,350 crore, respectively.
PLI Scheme is an ambitious and effective campaign in the pharmaceutical sector, coupled with social responsibility. And all this has been achieved by way of implementation, communication, industry collaboration and evaluation. It will promote the manufacturing of high-value products in the pharmaceutical sector. The duration of the scheme will be for nine years from 2020-21 till 2028-29. The scheme shall cover pharmaceutical goods under three categories as mentioned below:
The pharmaceutical industry in India is an integral part of our life and contributes significantly to the development of our nation. By making PLI Scheme first across Asia Pacific Economic Cooperation (APEC) region, the Government of India wished to encourage the pharmaceutical sector to promote global collaboration as well as demonstrate high-level collaboration among countries in the region during this critical period. The scheme will benefit domestic manufacturers. Moreover, it will help to create employment and will make available a wider range of affordable medicines for consumers.
The PLI Scheme for IT hardware industry is aimed at providing a single point for the direct purchase of approved hardware for use in Departmental Sites, Government Workshops & Industries (G w), Research & Development Centres & Educational Institutions (Research & Development) (Undertakings), Trades, Commerce & Services (Exports), Jewelry Stores, Handicrafts & Craft Stores (Undertakings), Shipping Department Stores (Undertakings) and Excise Establishments.
It will boost domestic manufacturing and investments in the value chain of IT Hardware. The target sectors under the scheme includes laptops, tablets, all-in-one PCs and servers. Under the scheme, beneficiaries will be given incentives of 4% to 1% on net incremental sales over the base year(2019-20) for a period of four years. The government expects the scheme to reduce India’s import dependence for IT hardware in a major way. Currently, 80% of the country’s laptop and tablet demand is met through imports.