Production-linked incentive (PLI) scheme  

Context: The government has started inviting applications for the second round of large-scale electronics manufacturing under the production-linked incentive (PLI) scheme with focus on some electronic components like motherboards, semiconductor devices, among others.

About the scheme:

• PLI scheme is a scheme that aims to give companies incentives on incremental sales (over FY 2019-20) from products manufactured in domestic units.
• The scheme invites foreign companies to set up units in India.
• It also aims to encourage local companies to set up or expand existing manufacturing units and also to generate more employment and cut down the country's reliance on imports from other countries.
• The purpose of widening the PLI Scheme to cover more products was:
  • To protect identified product areas
  • To introduce non-tariff measures that make imports more expensive.
  • To acknowledge the relevance of exports in overall growth strategy but focus more on the domestic market
  • To promote manufacturing at home by offering production incentives and encourage investments both from within and outside.

https://indianexpress.com/article/business/economy/it-min-invites-applications-for-2nd-round-of-electronics-manufacturing-under-pli-7228555/