Union Budget 2022: Government’s Big Push to PLI Schemes
India’s Production Linked Incentive Schemes have proven themselves to be an economic success. Currently spanning fourteen sectors, PLI Schemes are tipped to contribute to additional production worth Rupees Thirty Lakh Crores over the next five years, having the potential to generate sixty lakh additional jobs. PLI Schemes aim to incentivise foreign investors to set up their manufacturing units in India and also promote the local manufacturers to expand their units and generate employment, increasing India’s global competitiveness. The integration of India in global value chains, and to ensure India’s participation in cutting edge manufacturing within sunrise sectors has been greatly boosted by the PLI Schemes. Originally an extra-budgetary measure which was kicked off for electronics in 2020, PLI Schemes came to the fore in the 2021 Union Budget. Preceding the 2022 budget, India also embarked on an ambitious PLI Scheme for Semiconductor fabrication, which offers massive incentives to technology intensive firms to make India their new home. The 2022 budget continues to build on these successes and introduces two key PLI Schemes- one for building a strong 5G ecosystem, and one for high efficiency solar power modules. The clear intent of the Government of India is to enable India to leapfrog in critical technologies and become a design intensive, technologically driven global manufacturing hub.
This blog has been authored by Ankita Sharma.