“INDUSTRY MINISTRY ADVOCATES LOWER IMPORT TARIFFS TO BOOST PLI BENEFITS”
Why in the news?
- The Commerce and Industry Ministry is advocating for lower import tariffs on inputs for electronics and other sectors.
- High tariffs are seen as negating the benefits of the Production Linked Incentive (PLI) scheme compared to competitors like China and Vietnam.
About Production Linked Incentive (PLI) Scheme:
- Initiative: Started by the Government of India to boost the manufacturing sector.
- Incentives: Provides performance-linked incentives on incremental sales from products manufactured in domestic units.
- Objectives: Boost manufacturing and Reduce imports.
- Investment: Announced Rs 1.97 lakh crore (US$ 28 billion) worth of PLI schemes in 2021 for 13 key sectors.
- Implementation: Schemes are in various stages of implementation by the respective Ministries/Departments.
- MSME Impact: Expected to have a cascading effect on the country’s Micro, Small & Medium Enterprises (MSME) ecosystem.
source:ipef
Key Points on Tariff
Two types:
Purposes:
Impacts:
Associated Article: https://universalinstitutions.com/it-hardware-pli-scheme-2-0/ |