The Production-Linked Incentive (PLI) scheme represents a significant initiative by the Indian government to enhance domestic manufacturing across various sectors. This scheme offers financial incentives linked directly to production levels, aiming to make Indian industries more competitive globally.
Recent announcements regarding the PLI scheme have highlighted targeted sectors, specifically the toys, leather, and footwear industries. These sectors have been identified as key areas for growth and development within the manufacturing landscape.
The interim budget has allocated a substantial disbursement of Rs.6,200 crore for the PLI schemes in these sectors for the upcoming fiscal year. This figure marks a 33% increase from the estimated Rs.4,645 crore allocated in the current fiscal year, indicating a strong commitment to boosting these industries.
The proposed PLI scheme for the leather and footwear sectors will span from FY24 to FY32. For the toys sector, a recommendation has been made for an outlay of Rs.3,489 crore covering the scheme period from FY25 to FY32.
There are expectations that PLI disbursements will surpass Rs.11,000 crore this fiscal year. This anticipated increase reflects the government's ongoing efforts to bolster domestic manufacturing and enhance export capabilities, crucial for India's economic recovery post-pandemic.
The yearly outgo of incentives under the PLI scheme is contingent upon various factors. Manufacturers benefiting from the existing Financial Assistance under the FLDP scheme will have those benefits adjusted while calculating incentives under the new PLI scheme.
As of now, the Cabinet has not yet approved the token outlay for FY25. The proposal remains under consideration, awaiting official approval.
The projected increase in PLI disbursements signals the government's commitment to strengthening domestic manufacturing sectors. This strategy is pivotal for boosting exports and facilitating economic recovery in the wake of the pandemic.
The PLI scheme is designed to make Indian manufacturers more competitive on a global scale. By incentivizing enhanced production output, the scheme aims to improve manufacturing efficiencies and boost export capabilities.
Q1. What is the PLI scheme mentioned in the interim Budget?
Answer: The Production-Linked Incentive (PLI) scheme is a government initiative aimed at enhancing domestic manufacturing through production-linked financial incentives.
Q2. Which sectors are targeted by the new PLI schemes?
Answer: The new PLI schemes target the toys, leather, and footwear industries to stimulate growth and production in these areas.
Q3. What is the budget allocation for PLI schemes in 2023?
Answer: The interim Budget has allocated Rs.6,200 crore for PLI schemes in the targeted sectors, reflecting a 33% increase from the previous fiscal year.
Q4. How long will the PLI scheme for leather and footwear last?
Answer: The proposed PLI scheme for leather and footwear will be effective from FY24 to FY32.
Q5. How does the PLI scheme benefit domestic industries?
Answer: The PLI scheme incentivizes Indian manufacturers to increase their production output, enhancing their competitiveness and boosting export capabilities.
Question 1: What is the main purpose of the PLI scheme?
A) To increase government employment
B) To boost domestic manufacturing
C) To enhance foreign investment
D) To reduce taxes on exports
Correct Answer: B
Question 2: Which sectors are included in the new PLI scheme?
A) Electronics and textiles
B) Toys, leather, and footwear
C) Agriculture and mining
D) Pharmaceuticals and chemicals
Correct Answer: B
Question 3: What is the budget allocation for the PLI scheme in 2023?
A) Rs.4,645 crore
B) Rs.5,200 crore
C) Rs.6,200 crore
D) Rs.7,000 crore
Correct Answer: C
Question 4: How long is the proposed PLI scheme for leather and footwear?
A) FY22 to FY28
B) FY23 to FY30
C) FY24 to FY32
D) FY25 to FY33
Correct Answer: C
Question 5: What is the expected increase in PLI disbursements this fiscal year?
A) Rs.9,000 crore
B) Rs.10,000 crore
C) Rs.11,000 crore
D) Rs.12,000 crore
Correct Answer: C
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