NEW DELHI: Wiser by the initial experience with production-linked incentive (PLI) scheme, govt is now looking at a more comprehensive approach for champion sectors, complete with a package for inputs, skilling and other aspects.
Govt sources told TOI that ministries that were pitching for new sectors under the PLI scheme have been asked to go back to the drawing board and redraw the scheme, taking a 360-degree view.
Footwear, toys, textiles and speciality chemicals were among a host of sectors that were vying to be included under the scheme that targets to develop a large production base within the country to meet domestic and export demand. On its part, govt provides incentives if there is an annual increase in production in line with the targets.

Mobile phones have been the biggest success story among the 14 sectors where PLI was launched five years ago as part of govt’s Atma Nirbhar Bharat initiative. While production of phones and related accessories has increased, with the likes of Apple bringing a large part of its vendor base to India, the import of components from China has continued unabated, and has only increased.
Based on the learnings, the new component scheme was cleared by the Union Cabinet on Friday.
Officials said that a similar approach is being contemplated for new sectors. For instance, in case of footwear, while global giants are looking to significantly step up sourcing from India to de-risk their production, but they find that inputs required are unavailable, for which they have to again rely on China.
Several of the players are also looking to get some of their vendors to set up shop in India so that the entire ecosystem is there, and the synergies help lower costs.
The tweaks that have been discussed at the highest level mean that there may be a need to increase the allocation for some of the new sectors that are included against the earlier assessment that the “surplus” or “unutilised” funds from the Rs 1.97 lakh crore allocated for the 14 sectors covered by PLI can be used.