Manufacturing Shift: PLI 2.0 and Duty Waivers Drive Deep-Tier Localisation

This report covers Industrial Subsidies and PLI Schemes from July 06 to July 13, 2026. Findings indicate a decisive pivot from assembly-led incentives to deep-tier component manufacturing through customs duty waivers and successor scheme frameworks.

Key Statistics

Weekly Executive Summary

• Fiscal Pivot: The Ministry of Finance scrapped import duties on critical electronics components to reduce input costs for PLI participants, targeting a shift from assembly to component fabrication.
• Sectoral Expansion: Formal consultations for "PLI 2.0" in Food Processing commenced, focusing on MSME innovation and branding after existing investments exceeded targets by 20%.
• Regulatory Relief: DPIIT extended the deadline for "legacy stock" clearance in the footwear sector by one year and increased R&D sample import limits to 4,500 units annually.

Deep Dive: Key Developments

Electronics Import Duty Waivers for PLI Ecosystem

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