Production Linked Incentives approved by GoI for IT and Pharma
A new PLI scheme was launched by the government of India. Under the scheme, a total production of worth Rs 3,26,00 crore will be achieved out of which 75 per cent contribution will be from exports. This scheme can generate employment of over 1,80,000 in over 4 years. The budget includes an incentive outlay of Rs.7,325 crore besides the administrative charges of Rs 25 crore. This will boost Domestic Value Addition for IT Hardware for which there is an expectation that it will rise to 20% – 25% by 2025. PLI has been extended by Rs 15,000 crore for pharmaceuticals to reduce the imports and boost the domestic production. Currently, the Indian pharmaceutical industry is $40 billion and it contributes around 3.5 per cent to the global market. But the high-end patented drugs are still imported. The extension of PLI Scheme to pharmaceuticals will make it globally competitive.