HomeLifestyleWhy is the PLI scheme important for industries and how does its...

Why is the PLI scheme important for industries and how does its benefit reach the common people?

Highlights

The central government runs this scheme to promote the production of products.
The government had earlier launched a PLI scheme of Rs 2 lakh crore for 14 sectors.
Increasing production ensures adequate supply of the product and lowers its prices.

New Delhi. The central government will extend the Rs 35000 crore PLI scheme to other industries as well. This includes leather, bicycle, some vaccine products and telecom products industries. News agency PTI said this on Sunday evening quoting an official. According to the news, this proposal is still under consideration. Various ministers are talking about this.

The Center has already implemented the Rs 2 lakh crore PLI scheme for 14 sectors. This includes pharma, automobile, textile, food products, high-capacity solar PV models and specialty steel industries. According to PTI, officials say that out of this Rs 2 lakh crore, some money is left which can be given to other industries. There has been a lot of discussion in the last few years regarding the PLI scheme. It is being said that this gives much needed support to the industries. Today we will tell you in detail about the PLI scheme and see how its benefits reach the common man.

Also read- The rate of change of employees decreased during the second quarter in the IT sector, know the details

What is PLI Scheme
Suppose you feel that there is a need to increase the production of a product. The demand for that product is not good in the market right now but you understand that its mass production and sale at the right price will boost its demand. In this situation, we bring Production Linked Incentive (PLI). PLI is being used by governments for a long time to increase production. It is clear from the name that under this scheme, incentives are given to companies to increase production. Now this incentive can be given in different ways. This includes exemption of import-export duty or easier land acquisition process.

understand by example
Electric scooters are very much discussed in the country. However, their number at the ground level is still very less. People are still a little hesitant to buy electric scooters. There can be many reasons for this. This could be due to the availability of stations for charging the scooters, reports of fire in them or apprehensions about their power. But the government wants people to gradually shift towards electric vehicles. In such a situation, she is emphasizing on making the production as much as possible. That’s why the government has brought Faster Adoption and Manufacturing of Hybrid and Electric under the PLI scheme. In this, many types of discounts are given to EV manufacturers.

How the benefits reach the common people
When the government gives financial help to industries through discounts in many ways to increase production, then its purpose is not only to increase production. As we also mentioned above that with the increase in production, it is also expected that companies will launch their products in the market at the right prices so that more and more people can buy them. In this way, due to the incentives received by the companies, the prices of the products in the market are reduced and the common buyers get the benefit.

Tags: business news in hindi, central government, Industries, Scheme

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