The government is set to revamp the production-linked incentives (PLIs) by easing fund release norms, expanding the scheme to more sectors, and providing special carve-outs for MSMEs (micro, small, and medium enterprises) in labor-intensive industries, according to reports.The proposed restructuring will also include incentives for research and development (R&D) to foster a robust manufacturing ecosystem. The government has already started accepting applications for quarterly release of incentives, shifting from the previous annual disbursement schedule.
New sectors such as toys, furniture, and apparel will soon be included under the PLI scheme due to their significant job creation potential. Additionally, the government may broaden the PLI scheme for man-made fiber (MMF) and technical textiles to incorporate certain cotton-based apparel, with announcements expected in the forthcoming budget.