There are demands to extend production linked incentive (PLI) scheme to more sectors such as certain electronic components, pharma and medical devices, and discussions are underway in the government on these proposals, a senior government official said.

Discussions are also going on to bring PLI scheme for toys, furniture, bicycles and containers. The objective of the scheme is to make domestic manufacturing globally competitive, create global champions in manufacturing, boost exports and create jobs.

The government last year rolled out the scheme with an outlay of about ₹2-lakh crore for as many as 14 sectors, including automobiles and auto components, white goods, textiles, advanced chemistry cell (ACC) and speciality steel.

"So, from ₹1.97-lakh crore, there are savings from some sectors. So against those savings, things are being planned. Proposals are under consideration," the official said.

Strategy and demand

Demand for including sectors like certain electronic components, toys, furniture, bicycle, and containers has come against the backdrop of the government's move to cut imports and boost domestic manufacturing. The strategy behind the scheme was to offer companies incentives on incremental sales from products manufactured in India, over the base year.

The scheme has been specifically designed to boost domestic manufacturing in sunrise and strategic sectors, curb cheaper imports and reduce import bills, improve cost competitiveness of domestically-manufactured goods, and enhance domestic capacity and exports.

Currently, the scheme covers sectors like automobiles and auto components, specialty steel, telecom and networking products, electronic/technology products. The PLI scheme has also been extended to white goods (ACs and LEDs), food products, textile Products — MMF (man made fibre) segment and technical textiles, high efficiency solar PV modules, and ACC battery.