Tax sops over subsidies: Why PLI scheme doesn't enthuse India Inc

Local sourcing of components and state monitoring keep firms away from production-linked incentives

India Inc is counting on tax sops to expand production rather than on subsidies from the government’s ambitious production-linked incentive (PLI) scheme. Though the scheme has been rolled out with a budget of close to Rs 2 trillion, as of now, there is no surge of enthusiasm for it.

“No one is going to manufacture for a prize, unless there is a commercial sense to expand,” said a top source at a consultancy firm, on the condition of anonymity. 

However, ministries have begun to announce the PLI winners and the pace will accelerate over the next few weeks. The department of pharmaceuticals