What is a Production linked incentive scheme?

What is a Production linked incentive scheme?

- Production linked incentive is an outcome or output-oriented scheme

- Here, the incentive b6 the government will pay proportionate to the manufacture of the goods.

- Therefore, under this scheme, cash incentives would be provided for five to seven years to specified sectors.

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Benefits to a business in availing the Production Linked Incentive scheme

– Greater access to financing for research and development in newer areas. – Investment for plant, machinery and up-gradation of capital assets. – Moreover, reduced dependence on imports. – Promotion of domestic manufacturing, and therefore, reduced costs. – Promotion of exports. – Diversification of goods.

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Production linked incentives for electronics manufacturing, technology products and Mobile manufacturing

- With an aim to promote large scale electronics, the government would incentivise companies setting up a manufacturing base in India.   - Companies in the electronics value chain such as mobile phones. electronic components and semiconductor packaging will cover

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