Cabinet Approved PLI Scheme to 10 Key Sectors

The Union Cabinet has approved the Production-Linked Incentives (PLI) for 10 manufacturing sectors on November 11, 2020. The Production-linked incentives costs up to ₹2 lakh crore for next five years.


The approval will enhance India’s manufacturing capabilities. The scheme will make the Indian manufacturers globally competitive. It will further attract the investment and enhance the exports.

What are the sectors?

The 10 key sectors that will get the benefit from the production-linked incentive are- automobiles & auto components,  capital goods, pharmaceuticals drugs, specialty steel, technology products, white goods (ACs and LEDs),  textiles, telecom & networking products, high efficiency solar PV modules and advanced battery cells.


Earlier, the central government had set up a group of secretaries in order to boost growth in private sector. The group was headed by the cabinet secretary Rajiv Gauba. The NITI Aayog had identified the ten sectors as key sectors that will attract investments.

Production linked incentive scheme

The central government  introduced this scheme in March 2020.  It was launched in order to boost the domestic manufacturing and cut down on import bills. The scheme is aimed at giving the companies incentives on incremental sales from products manufactured in domestic units. The scheme also aims to encourage local companies apart from attracting the foreign investments.  The primary objective of the scheme is to make India more compliant with the World Trade Organisation (WTO) commitments.

Why this scheme was needed?

The PLI scheme is important because the government cannot continue making investments in these capital intensive sectors. These sectors need longer times to provide the returns. So, with the launch of this scheme, government seeks to invite global companies with adequate capital to boost the capacities in India.