Q: What is the PLI scheme mentioned in the interim Budget?
A: The Production-Linked Incentive (PLI) scheme is a government initiative designed to boost domestic manufacturing across various sectors by providing incentives linked to production levels.
Q
: Which sectors are the new PLI schemes targeting?
A: The new PLI schemes are targeting the toys, leather, and footwear industries.
Q: How much is the budgetary outlay for the PLI schemes for these sectors?
A: The interim Budget has pegged disbursements from PLI at Rs.6,200 crore for the next fiscal year for these sectors, which is about 33% higher than the estimated Rs.4,645 crore this fiscal.
Q: What is the scheme period for the proposed PLI scheme for leather and footwear?
A: The scheme period for the proposed PLI scheme for leather and footwear is FY24 to FY32.
Q: How will the PLI outlay affect the toys sector?
A: The PLI outlay for the toys sector is expected to see an increase, with a recommendation for an outlay of Rs.3,489 crore for the scheme period of FY25 to FY32.
Q: Are there any specific targets for the expected increase in disbursements for the PLI scheme?
A: Yes, the document suggests that the government is expecting the PLI disbursements of PLI to cross Rs.11,000 crore this fiscal.
Q: What does the yearly outgo of incentives depend on?
A: The yearly outgo of incentives under the PLI scheme depends upon variables. The benefits availed by a manufacturer under the existing FLDP scheme shall be adjusted while calculating the incentives for the same unit under this PLI scheme.
Q: Has the Cabinet approved the token outlay for FY25?
A: No, the token outlay for FY25 has not yet been approved by the Cabinet. It is still a recommendation, and the approval is pending.
Q: What does the expected increase in PLI disbursements indicate?
A: This increase indicates the government’s push to strengthen domestic manufacturing sectors and to boost exports, which is seen as a pivotal role in India’s post-pandemic economic recovery.
Understanding the PLI Scheme Impact
Q: How does the PLI scheme support domestic industries?
A: The PLI scheme aims to make Indian manufacturers globally competitive by incentivizing them to enhance their production output and thereby increase their efficiencies and export capabilities.
