‘PLI scheme likely to boost India’s manufacturing output by $520 bn’
NEW DELHI: Prime Minister Narendra Modi on Friday said production linked incentive (PLI) scheme, which is aimed at boosting domestic manufacturing and exports, is expected to increase the country’s production by $520 billion in the next five years.
Addressing a webinar on PLI scheme, organised by Department of Industry and International Trade (DPIIT) and NITI Aayog, through video conference, Modi said the government is continuously carrying out reforms to boost domestic manufacturing.
In this year’s Budget, about Rs 2 lakh crore was earmarked for the PLI scheme for the next five years and “there is an expectation that the scheme would result in increasing the production by about USD 520 billion in the next five years”, he said.
He added that there is also an expectation that the current workforce in the sectors, which will avail the benefits of the PLI scheme, will be doubled and job creation will also increase.
The Prime Minister said the government is working to reduce compliance burden, further improve ease of doing business and cut down logistics costs for the industry.
“An average of 5 per cent of production is given as incentive. This means that PLI schemes will lead to production worth USD 520 billion in India in the next five years,” he said.
Modi said that over the past 6-7 years, several successful efforts have been made to encourage ‘Make in
India’ at different levels.He stressed on the need to take a big leap, as well as increase the speed and scale to boost manufacturing as it would increase employment generation in the country.
The Prime Minister said the government is working at every level to promote the industry through measures like the ease of doing business, reducing the compliance burden, creating multi-modal infrastructure to reduce logistics costs, and constructing district-level export hubs.
“Our effort is to reduce over 6,000 compliance burden (for industry),” he said.
The government, he said, believes that its interference in everything creates more problems than solutions and “therefore, self-regulation, self-attesting, self-certification are being emphasised”.