Manufacturing-linked incentive scheme prolonged to pharmaceutical, IT sector

Today News Online Service

New Delhi, February 24

The government today extended the production-linked incentive (PLI) scheme to the pharmaceutical and IT hardware sectors, offering over Rs 22,000 crore of sops to boost domestic manufacturing and create jobs. The intent is to make India a major manufacturing hub in the production of laptops, tablets, personal computers, servers and also medicines and medical equipment.

To boost domestic manufacturing

  • The scheme will offer over Rs22,000 crore of sops to boost domestic manufacturing and create jobs
  • While Rs15,000 crore of sops will be provided for the pharma sector over four years, Rs7,325 crore will be made available for domestic manufacturers of laptops, tablets, PCs and servers for four years

Briefing media after the meeting of the Union Cabinet, which was chaired by Prime Minister Narendra Modi, IT & Telecom Minister Ravi Shankar Prasad said, “The government’s intention is to bring the five largest companies of the world manufacturing laptops or tablets to India and will be offered PLI.”

The move, which is line with the government’s vision of ‘Aatmanirbhar Bharat’, comes just a week after the Union Cabinet’s approval for the PLI scheme for telecom equipment.

“The scheme is likely to benefit five major global players and 10 domestic champions in the field of IT hardware manufacturing,” the government said. The total cost of the proposed scheme is approximately Rs 7,350 crore over 4 years, which includes an incentive outlay of Rs 7,325 crore and administrative charges of Rs 25 crore.

The PLI scheme for the pharmaceutical sector is set to entail an outlay of Rs 15,000 crore. The duration of the scheme would be from 2020-21 to 2028-29 and is expected to promote the production of high-value products in the country and increase the value addition in exports, the government said.

The total incremental sales of Rs 2,94,000 crore and total incremental exports of Rs 1,96,000 crore are estimated during six years from 2022-23 to 2027-28, it said, adding it is expected to generate 20,000 direct jobs and 80,000 indirect employment for both skilled and unskilled personnel.

“The scheme is also expected to bring in investment of Rs 15,000 crore in the pharmaceutical sector,” it said.

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