PLI scheme may add USD 520 billion to GDP in 5 years: Report

Mumbai: 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. 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.

If materialised, the move will help cut imports on one hand and boost exports on the other.

“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.