INR 1.97 trillion worth of incentives under the PLI Scheme
The PLI Scheme’s primary objective is to incentivize domestic producers for rapidly adding capacities. The Scheme provides incentives based on incremental sales.

Why PLI?
India is facing several macro-economic problems, including- 
·       A growing trade deficit
·       Its large population and significant blue-collar labor with worrisome unemployment
And, any capital-intensive industry has longer gestation periods.
PLI Scheme, one of the manifestations of “Make In India Vision”, has been framed to address several issues. It is targeted towards building domestic manufacturing capacities. To boost import substitution. To induce capex in jobs-creating industries.  It also factors in fulfilment of growing domestic demand. It is cognizant of longer time-windows for generating ROI.

Industries covered under PLI Schemes
India’s Finance Minister, declared an allocation of INR 1.97 trillion for the PLI Schemes spanning 13 critical industries, with the goal of creating 6 million new jobs and an increased production of INR 30 trillion over the next five years. These sectors include: Electronics, Auto-components, Automobile, Renewables, Chemicals, Medical Devices, Pharma Mfg., Bulk Drugs, Telecom, Textile & Apparels, Food Processing, White Goods, Metals & Mining, Aviation.

Impediments faced by Industries to fully embrace PLI Schemes:
1.      Lack of participation: In several sectors, not enough of companies participating in the PLI schemes, such as, medical devices, textiles, and automobile components. This can be attributed to:
·       Companies failing to meet qualification norms
·       Lower ROI despite of the incentives.
2.      Unrealistic timelines: Steel sector is a capital-intensive sector that requires longer time frames for setting production facilities, which have longer gestation periods of 10 years.
3.      Steep targets and supply chain disruptions:
4.      Trade agreements and Import policy: With no import tariffs on laptops and IT products, as India is part of WTO agreement, imported products are cheaper.  

Taking industry feedback in account, should GoI sharpen the PLI Scheme then will it India’s game-changer in the world arena? Will it spur corporate credit growth?