The cabinet today announced Rs 2 lakh crore of production linked incentives for 10 major manufacturing areas.
Prime Minister Narendra Modi-led cabinet today announced Rs 2 lakh crore of production linked incentives for 10 major manufacturing areas ahead of Diwali. The government said that the move will help increasing production, exports, and employment in the country, giving support to the Atmanirbhar Bharat. Union Minister Prakash Javadekar said that while foreign mobile makers have come to manufacture in India, domestic companies like Lava, Micromax, Karbonn, etc will also be benefitted from the scheme. He added the government aims to prepare global champions.
The ten select areas are Advance Chemistry Cell Battery; Electronic/Technology Products; Automobiles & Auto Components; Pharmaceuticals drugs; Telecom & Networking Products; Textile Products; Food Products; High-Efficiency Solar PV Modules; White Goods (ACs & LED); and Speciality Steel. The government said that the final proposals of PLI for individual sectors will be appraised by the Expenditure Finance Committee (EFC) and approved by the Cabinet. Savings, if any, from one PLI scheme of an approved sector can be utilized to fund that of another approved sector while any new sector for PLI will require fresh approval of the Cabinet.
The cabinet said that the PLI scheme across these 10 key specific sectors will make Indian manufacturers globally competitive, attract investment in the areas of core competency and cutting-edge technology. It added that the move will also ensure efficiencies; create economies of scale; enhance exports; and make India an integral part of the global supply chain. Meanwhile, the government said that India is expected to have a $1 trillion digital economy by 2025.
While the government’s push for data localization, the Internet of Things market in India, and projects such as Smart City and Digital India are expected to increase the demand for electronic products, the PLI scheme will boost the production of electronic products in India, it underlined. Finance Minister Nirmala Sitharaman once again clarified that Atmanirbhar Bharat doesn’t mean inward-looking as the government wants to make India a manufacturing hub.