EY Recommends Extending PLI Scheme to AI and Space Sectors in Budget 2026
EY has recommended that the Indian government expand the Production Linked Incentive (PLI) scheme to include emerging sectors like artificial intelligence, space, and robotics in the upcoming Budget 2026. This initiative aims to boost private investment in alignment with the government's self-reliance policy, building on previous budget allocations that significantly increased funding for electronics, IT hardware, and automotive components. EY highlighted the need for tax certainty and streamlined compliance to attract both domestic and foreign investors amid a volatile global economic landscape.

EY has proposed that the Indian government extend the Production Linked Incentive (PLI) scheme to cover emerging technology sectors such as artificial intelligence (AI), space, and robotics in the upcoming Budget 2026. The suggestion aims to stimulate private investments in these areas, as the PLI scheme, launched in 2020, is aligned with the government’s self-reliance policy.
Previous allocations in the last budget included significant increases for electronics and IT hardware from ₹5,777 crore to ₹9,000 crore and for automobiles and components from ₹346.87 crore to ₹2,818.85 crore. By November 2024, committed investments under the PLI scheme reached ₹1.61 lakh crore. EY emphasized the importance of tax certainty and streamlined compliance to attract domestic and foreign investors, particularly in a volatile global economic environment.




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