What is the progress on the government offering product linked incentives or PLI to global players to set up manufacturing units in India?

It has been reported that the Indian government will proactively offer incentives to global manufacturers to the tune of Rs.168,000 crore. This $23 billion worth of incentives is intended to attract global companies to set up or shift their manufacturing base to India.

India has been trying for some time to get a share of the manufacturing pie that has gone to China in the last few years. Now, India sees an opportunity as many of the leading nations like the US and even Japan is looking to move part of their base out of China.

The idea of these product linked incentives or PLIs is to wean away companies where the parent nations are looking to diversify away from China due to inherent supply chain risks. However, India has to compete with Vietnam, Thailand and the Philippines in the game.

The incentives package is designed specifically for sectors like automobiles, solar panels, specialty steel, food processing and also specialized pharma products. A total of 24 global companies including Samsung, Foxconn and Wistron have pledged $1.5 billion to India.