Budget 2021-22 introduced new scheme of Product Linked Incentives (PLI) to boost manufacturing sector in 13 sectors

Need for New Industrial Policy. The last was developed in 1991 as LPG policy (Liberalisation, Privatisation and Globalisation) but since then major changes have taken place (Asian Crisis, Covid-19). To increase the contribution of industrial sector in GDP (now Manufacturing sector: 17% of GDP). To escape the MIDDLE INCOME TRAP by focusing on jobs for growth. Improvement in export competitiveness.