<p>The production-linked incentive (PLI) scheme launched to boost local manufacturing may add USD 520 billion to the gross domestic product in the next five years, according to a report.</p>.<p>The government had in March announced the PLI scheme to help lower the country's dependence on imports, mainly from China, by incentivising and inviting global as well as capital-rich companies to set up manufacturing capacities in the country.</p>.<p>If materialised, the move will help cut imports on one hand and boost exports on the other.</p>.<p>"The PLI scheme may add around USD 520 billion to the GDP in the next five years," domestic brokerage Sharekhan by PNB Paribas said in a note.</p>.<p>The scheme is applicable for 10 select sectors, which are labour-intensive and expected to cater to the growing employment needs and achieving size and scale in manufacturing.</p>.<p>As part of the scheme, the government has made a budgetary outlay of Rs 1.96 lakh crore or USD 26 billion.</p>.<p>The scheme envisages providing on average 5 per cent of the production value as an incentive. This implies that minimum production as a result of the scheme stands to be around USD 520 billion over the next five years, says the report.</p>.<p>The idea is to create a few large manufacturing players with the advantage of policy support to the tune of 5-8 per cent of value add, scale and world-class technology.</p>.<p>According to analysts, electronics, particularly mobile phone manufacturers, stand to be the biggest beneficiary of the scheme. Other sectors that will benefit include automobile, battery, pharma, food, textiles and telecom.</p>.<p>If taken off as planned, the scheme could boost exports, thus narrowing the trade deficit by USD 55 billion.</p>
<p>The production-linked incentive (PLI) scheme launched to boost local manufacturing may add USD 520 billion to the gross domestic product in the next five years, according to a report.</p>.<p>The government had in March announced the PLI scheme to help lower the country's dependence on imports, mainly from China, by incentivising and inviting global as well as capital-rich companies to set up manufacturing capacities in the country.</p>.<p>If materialised, the move will help cut imports on one hand and boost exports on the other.</p>.<p>"The PLI scheme may add around USD 520 billion to the GDP in the next five years," domestic brokerage Sharekhan by PNB Paribas said in a note.</p>.<p>The scheme is applicable for 10 select sectors, which are labour-intensive and expected to cater to the growing employment needs and achieving size and scale in manufacturing.</p>.<p>As part of the scheme, the government has made a budgetary outlay of Rs 1.96 lakh crore or USD 26 billion.</p>.<p>The scheme envisages providing on average 5 per cent of the production value as an incentive. This implies that minimum production as a result of the scheme stands to be around USD 520 billion over the next five years, says the report.</p>.<p>The idea is to create a few large manufacturing players with the advantage of policy support to the tune of 5-8 per cent of value add, scale and world-class technology.</p>.<p>According to analysts, electronics, particularly mobile phone manufacturers, stand to be the biggest beneficiary of the scheme. Other sectors that will benefit include automobile, battery, pharma, food, textiles and telecom.</p>.<p>If taken off as planned, the scheme could boost exports, thus narrowing the trade deficit by USD 55 billion.</p>