The 2nd Round of PLI Scheme Expected to Push Make in India to the Next Level
With the success of 1st round of PLI, GoI introduced the 2nd round of Production Linked Incentive (PLI) scheme in March 2021 focused only on electronic components such as active semiconductor components, passive components, PCB assemblies etc. The eligibility to apply for incentives under the 2nd-round scheme is contingent on relaxed threshold criteria and incentives of 3-5% of incremental sales. The tenure of scheme would be 4 years, compared to 5 years for the players shortlisted in the 1st round. The 2nd round has expanded the window for up to 30 eligible companies.
This initiative is bound to pave new employment opportunities in India and the government would also boost the manufacturing sector through its electronics manufacturing focused skill development programs. This is expected to lessen the dependency on other countries.