Modi government is likely to offer more production-linked incentive schemes, one of which has already been successful in attracting manufacturers of big brands such as Apple’s iPhones.
As India strives to lure foreign investors to invest in India, the Modi government is likely to offer more production-linked incentive schemes, one of which has already been successful in attracting manufacturers of big brands such as Apple’s iPhones. The government is working on offering production-linked incentives for up to five sectors to boost domestic manufacturing, a top official at the Ministry of Finance said on Thursday. The incentives would be offered to push manufacturing and help struggling industries, Economic Affairs Secretary Tarun Bajaj said at a virtual conference. However, he did not specify the sectors.
Recently, Apple’s global contract manufacturers, Foxconn and Wistron, applied for the Modi government’s production-linked incentive (PLI) scheme to make India their next hub for production and exports of iPhones. Another such scheme was witnessed in the field of pharmaceuticals where the Ministry of Chemicals and Fertilizers announced a production linked incentive (PLI) scheme for the promotion and manufacturing of pharmaceutical raw materials in India.
The Modi government had urged states to talk to foreign investors and try to attract them to invest in various sectors. Under the Atmanirbhar Bharat mission, the government aims to ramp up manufacturing activity in the country, for which the Prime Minister has proclaimed full support to the foreign firms willing to invest in India. Earlier this week, while addressing the India Ideas Summit organised by USIBC, PM Modi once again urged the US firms to come and invest in India, saying that now is the best time to do so.
Various state governments such as those of Uttar Pradesh and Uttarakhand have also been religiously trying to attract foreign investors. While the UP CM Yogi Adityanath-led government spoke to several US companies and listed out the benefits it can offer, Uttarakhand CM Trivendra Singh Rawat wrote an open letter to Google CEO Sundar Pichai urging Google to include the hill state in its plan to invest in India.