Production-linked incentive schemes for 9-10 sectors soon: Rajiv Kumar, Niti Aayog

NEW DELHI: India will soon introduce production-linked incentive schemes for nine to 10 sectors to encourage local manufacturing, although the tariff support offered will be limited, Niti Aayog vice chairman Rajiv Kumar said.

“Incentivising domestic and global investors through the PLI scheme will be done while respecting multilateral trade norms and any tariff support will have an inbuilt sunset clause,” he said, reiterating that India will remain open to global trade.

The move is aimed at helping the country regain its share in global trade, Kumar said at a Confederation of Asia-Pacific Chambers of Commerce and Industry conference organised by the Federation of Indian Chambers of Commerce and Industry on Friday.


India already has PLI schemes for mobile phones, medical devices and pharmaceuticals and the plan is to extend them to other sectors including food processing and battery manufacturing. These schemes are outcome and output-oriented wherein cash incentives are paid once the goods are manufactured.

Kumar said the Indian government is committed to give greater space to private enterprises so as to help the country achieve sustainable growth rates.

“We will pursue self-reliance, give the best possible environment to domestic enterprises while at the same time respecting and recognising our existing investors,” he added.

He said the government had rationalised labour laws to give flexibility to entrepreneurs and moved out of agriculture through a series of reforms to attract more private investments in the sector.