The production-linked incentive (PLI) scheme of the central government, geared to encourage domestic manufacturing has generated investment commitments of ₹2.34 lakh crore across 14 sectors, according to data collated from various ministries, Economic Times reported.

The government expects the scheme to generate additional output worth Rs 28.15 lakh crore and 6.45 million new jobs over the next five years. There has been a tremendous response across all the sectors for which the scheme has been implemented, said a senior government official. Total outlay for the scheme across the 14 sectors is Rs 1.97 lakh crore.

Reportedly, PLI schemes for automobile and auto components, advanced chemistry cell batteries, specialty steel and high-efficiency solar panels have garnered maximum interest.

The scheme offers a cash incentive for three to five years on the incremental sale of goods made in India over the determined base-year sales. Additionally, the identified beneficiaries are required to commit to a certain minimum investment in India.

"The PLI scheme is an initiative that has the potential to significantly enhance the scale of manufacturing in India - it has started off quite well," said Pawan Goenka, chairman of SCALE Committee and former managing director of Mahindra & Mahindra.

"In the next few years, PLI units will have additional production to sustain exports on a sustainable basis,” Ajay Sahai, director-general of the Federation of Indian Export Organisations (FIEO) said.

Sahai added, “Companies will procure more from domestic sources, which will help our ancillaries to grow and maintain necessary standards to eventually become suppliers to the world.”

Image courtesy: FIEO DG Ajay Sahai (ANI)