Definition: A government scheme aimed at boosting domestic manufacturing and reducing import dependence by providing financial incentives to companies on their incremental sales of goods manufactured in India over a base year. The scheme also mandates fresh investment in plant and machinery.
Important Prelims Pointers:
- Incentives are linked to incremental sales, not total production or profit.
- The scheme is sector-specific and implemented through separate notifications.
- Applicable only to manufacturing within India.