The Production Linked Incentive Scheme provides sops to companies for producing more locally. Companies are rewarded if they meet prescribed production growth targets with respect to a base year. The PLI is also aimed at cutting down import bills, improving the cost competitiveness of local industry and improving job creation. Apart from inviting foreign companies to set up manufacturing units in the country, the scheme also encourages local companies to expand production and manufacturing in India. The PLI scheme was first announced by the government in March 2020 and since then has been extended to several sectors.