What does PLI mean in ACCOUNTING
PLI stands for Production Linked Incentive, an initiative by the Government of India to enhance domestic manufacturing capabilities and boost exports. It aims to attract investments, create jobs, and make India a global manufacturing hub.
PLI meaning in Accounting in Business
PLI mostly used in an acronym Accounting in Category Business that means Production Linked Incentive
Shorthand: PLI,
Full Form: Production Linked Incentive
For more information of "Production Linked Incentive", see the section below.
» Business » Accounting
What is PLI?
PLI is a fiscal incentive program that offers financial incentives to eligible manufacturers in specific target sectors. The incentives are linked to incremental production or sales achieved by the manufacturers. This encourages companies to expand their production capacity and increase their exports.
Target Sectors
The PLI scheme covers various sectors, including:
- Information Technology (IT) Hardware
- Pharmaceuticals
- Textiles
- Automotive
- Medical Devices
- Steel
- Food Processing
Eligibility Criteria
To be eligible for PLI incentives, manufacturers must meet the following criteria:
- Establish new manufacturing facilities or expand existing ones
- Achieve specific production or sales targets
- Invest a certain amount in capital expenditure
- Create employment opportunities
Benefits of PLI
- Increased Production: PLI incentives encourage manufacturers to increase their production capacity, leading to an increase in overall domestic manufacturing.
- Enhanced Exports: By incentivizing production, the scheme promotes exports and reduces India's dependence on imports.
- Job Creation: The expansion of manufacturing facilities and increased production create new job opportunities in the country.
- Global Competitiveness: PLI helps Indian manufacturers become more globally competitive by boosting their production efficiency and lowering costs.
- Technology Upgradation: The scheme encourages manufacturers to adopt advanced technologies and improve their manufacturing processes.
Essential Questions and Answers on Production Linked Incentive in "BUSINESS»ACCOUNTING"
What is the Production Linked Incentive (PLI) Scheme?
The Production Linked Incentive (PLI) Scheme is a government initiative designed to boost domestic production in key industries by providing financial incentives to manufacturers. It aims to enhance India's manufacturing capabilities, reduce imports, and promote exports.
Which industries are covered under the PLI Scheme?
The PLI Scheme currently covers 14 industries, including mobile phone manufacturing, electronics, pharmaceuticals, automobiles, textiles, food processing, and medical devices. The government can add or remove industries from the scheme based on evolving economic priorities.
How does the PLI Scheme work?
Manufacturers who qualify for the PLI Scheme are eligible for financial incentives based on their incremental production and sales. The incentives are typically calculated as a percentage of the incremental value addition or sales achieved by the manufacturer.
What are the eligibility criteria for the PLI Scheme?
To be eligible for the PLI Scheme, manufacturers must meet certain criteria, including minimum investment thresholds, production targets, and employment generation requirements. The specific eligibility criteria vary depending on the industry.
How long does the PLI Scheme last?
The duration of the PLI Scheme varies across industries. Typically, the scheme is implemented for a period of 5-7 years, with the incentive payouts being spread over this period.
What are the benefits of the PLI Scheme for manufacturers?
The PLI Scheme offers several benefits to manufacturers, including:
- Financial incentives to enhance production and sales
- Encouragement to invest in research and development
- Increased competitiveness in the global market
- Support for creating jobs and boosting domestic manufacturing
Final Words: The Production Linked Incentive scheme is a key initiative of the Indian government to transform the manufacturing sector. By providing financial incentives, the scheme aims to create a conducive environment for domestic manufacturing, boost exports, create jobs, and make India a global manufacturing hub.
PLI also stands for: |
|
| All stands for PLI |