The production-linked incentive (PLI) scheme, announced for 10 key sectors including textile and automobiles, would help India become self-reliant, boost manufacturing as well as enhance exports, Commerce and Industry Minister Piyush Goyal said on Wednesday.
The government on Wednesday approved the scheme for 10 sectors, taking the total outlay for such incentives to nearly Rs 2 lakh crore over a five-year period.
Goyal said the government will do the hand-holding for these sectors over the next five years.
“The PLIs announced earlier for the telecom, APIs and medical devices have got encouraging responses. The incentives will help India become strong, self-sufficient, self-reliant, and meeting our domestic needs as well as for exporting,” he said.
He also said the viability gap funding scheme for the social sectors will bring in private investment in the social sectors like drinking water, health and education, and help in meeting the needs of the people.
Meanwhile, speaking at a webinar, he invited the global investors to invest in India by taking benefit of the huge domestic market, and conducive business environment in the country.
Goyal said the Indian economy is coming out of the impact of the COVID-19 pandemic, and several data sets indicate that the country is returning back to business.
“Indian exports were up by 5 per cent in September. After a small dip in October, the exports in the first week of November have also shown 22 per cent growth. Imports are also picking up, showing that economic activity is normalising,” the minister added.
“We have liberalised several sectors including defence, agriculture, coal, mining, and space technology. More private investment is welcome in these sectors,” he said adding that the government should be out of consumer-oriented businesses and non-core sectors.
Further, the industry and exporters hailed the extension of the PLI scheme to ten sectors, stating that it would help in boosting manufacturing.
Deloitte India Partner Anand Ramanathan said the scheme would help in localising manufacturing and promoting greater levels of indigenisation from a supply chain standpoint.
“The announcements will help attract greater investments in the food industry which is a critical driver of employment and will also have a cascading impact on agriculture and allied sectors,” he said.
Sharing similar views, Shardul Amarchand Mangaldas & Co Partner Arvind Sharma said the scheme will boost production, exports, foreign exchange earnings and employment.
Federation of Indian Export Organisations (FIEO) President Sharad Kumar Saraf said it will further felicitate the vision of Make in India and Aatmanirbhar Bharat, “thereby not only making our products but also making brand India globally competitive”.
Inclusion of 10 sectors will reduce import dependence on these products providing level playing field to domestic sector.
The sectors are related to advance chemistry cell battery, electronic/technology products, automobile, pharmaceutical, telecom and networking products, textiles products, food products, high-efficiency solar PV modules, white goods (ACs and LED), and speciality steel.