According to two government officials, India plans to offer incentives of up to Rs 18,000 crore ($2.2 billion) to encourage local manufacturing in six new sectors, including chemicals, shipping containers, and vaccine inputs.

The proposal is part of the country's Rs 1.97 lakh crore-production-linked incentive scheme (PLI), which was launched in 2020 and currently targets 14 sectors ranging from electronics to drones, but has only been successful in a few of them.

So far, only a small portion of the PLI incentives have been claimed, prompting the government to reallocate unused funds to new sectors.

Limited payouts under the scheme could result in "large" savings that could be redirected to new sectors, according to two government officials familiar with the plan.

They did not want to be identified because the plan's details had not been made public. The federal trade ministry in India, which oversees the scheme's implementation, did not respond immediately to an emailed request for comment.

Toys, bicycles, leather, and footwear are among the six new industries that could join the PLI scheme, according to officials. These sectors will share the Rs 18,000 crore allocation carved out of the scheme's initial outlay, they added.