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INTEGRATED MAINS AND PRELIMS MENTORSHIP (IMPM) KEY (03/08/2024)

INTEGRATED MAINS AND PRELIMS MENTORSHIP (IMPM) 2025 Daily KEY

 
 
 
Exclusive for Subscribers Daily: Production Linked Incentive (PLI) and Privilege motion matter for the UPSC Exam? Why are subjects like Uniform Civil Code (UCC) and the Cloudburst important for both preliminary and main exams? Discover more insights in the UPSC Exam Notes for August 3, 2024

 

🚨 UPSC EXAM NOTES presents the July edition of our comprehensive monthly guide. Access it  to enhance your preparation. We value your input - share your thoughts and recommendations in the comments section or via email at Support@upscexamnotes.com 🚨

Critical Topics and Their Significance for the UPSC CSE Examination on August 03, 2024

Daily Insights and Initiatives for UPSC Exam Notes: Comprehensive explanations and high-quality material provided regularly for students

 

PLI SCHEME FOR ELECTRIC VEHICLE MANUFACTURERS

 

For Preliminary Examination: Production-Linked Incentive (PLI), Electric vehicle policy

For Mains Examination: Role of the government in promoting domestic manufacturing, Electric Vehicle Policy

 

Context:

The Government approved the Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry in India (PLI-Auto) on 15.09.2021 for enhancing India’s manufacturing capabilities for advanced automotive products including Electric Vehicles and their components, with a budgetary outlay of Rs. 25,938 crores

 

Read about:

What is Production Linked Incentive (PLI)?

Sectors with Production Linked Incentive 

 

Key Takeaways:

  • On September 15, 2021, the government sanctioned the Production Linked Incentive (PLI) Scheme for the Automobile and Auto Components Industry in India (PLI-Auto) to boost the country’s manufacturing capabilities for advanced automotive products, including electric vehicles and their components, with a financial allocation of Rs. 25,938 crores.
  • According to data from approved applicants, investments up to March 31, 2024, amount to Rs. 17,896 crores, while incremental sales have reached Rs. 3,370 crores.
  • The duration of the PLI-Auto Scheme was extended by one year through Gazette Notifications no. SO 5486(E) and SO 5487(E) on December 29, 2023
Production Linked Incentive:
 
The Production Linked Incentive (PLI) scheme is an initiative by the Government of India aimed at boosting the country's manufacturing sector and making it more globally competitive. Under this scheme, financial incentives are provided to companies based on their incremental sales and production.
 
The primary objectives of the PLI scheme include:
  • By providing incentives tied to production, the scheme encourages companies to increase their manufacturing activities within India
  • The scheme aims to attract both domestic and foreign investments in key sectors by offering financial benefits.
  • By enhancing production capacity, the scheme aims to increase the export of goods, improving the trade balance
  •  Increased production and investment are expected to generate more jobs.
  • The scheme targets high-tech and advanced manufacturing sectors, encouraging the adoption and development of cutting-edge technologies.
Sectors linked with PLI:
 
In alignment with India's vision of becoming 'Atmanirbhar', Production Linked Incentive (PLI) Schemes have been introduced for 14 key sectors, with a budget of Rs. 1.97 lakh crore (over US$26 billion), to strengthen India's manufacturing capabilities and boost exports.
The 14 sectors covered are:
(i) Mobile Manufacturing and Specified Electronic Components, (ii) Critical Key Starting Materials/Drug Intermediaries & Active Pharmaceutical Ingredients, (iii) Medical Device Manufacturing, (iv) Automobiles and Auto Components, (v) Pharmaceutical Drugs, (vi) Specialty Steel, (vii) Telecom & Networking Products, (viii) Electronic/Technology Products, (ix) White Goods (ACs and LEDs), (x) Food Products, (xi) Textile Product
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