Prime Minister Narendra Modi has said that the Production Linked Incentive (PLI) scheme is expected to increase the country’s production by $520 billion in the next five years. The scheme aims to boost domestic manufacturing and exports.

The government has also said that it aims to reduce 6,000 compliances at the central and state level.

The government has provided for Rs 2 trillion for PLI schemes in this year’s budget. Under the PLI scheme, an average 5 per cent of production has been given as incentive.

In terms of sectoral impact, the PLI in electronics is expected to improve domestic value addition from the current 5-10 per cent to 20-30 per cent. In telecom equipment manufacturing, Rs 2.5 trillion production in next five years is expected and India can benefit from the export opportunity of Rs 2 trillion.