PLI scheme would be more effective than other schemes: Experts

Mumbai: The Production linked incentives (PLI) announced by the government on Wednesday could go a long way as compared to some of the other schemes such as Mega Food, said industry trackers.

In a move to enhance India’s manufacturing sector the government on Wednesday approved PLI for up to Rs 2 lakh crore for ten manufacturing sectors. The scheme is for next five yers, Union minister Prakash Javadekar said.

“The PLI scheme, since it is based on incremental output, is more effective from the Government’s standpoint than some of the other grant based schemes like Mega Food Parks etc. which are more input oriented. It is also targeted towards the larger anchor investors who are capable of mobilising the initial investment for brownfield or greenfield projects by themselves,” Arindam Guha, Partner, Leader – Government & Public Services, Deloitte India.


This is set to impact India’s growth trajectory, said industry trackers.

"The Government of India is taking critical economic and fiscal measures to bring the economy back on its growth track. One of such measures is introducing and extending production linked incentive schemes in various sectors. The recently approved package will boost production, exports, forex earnings and employment” said Arvind Sharma, Partner, Shardul Amarchand Mangaldas & Co.