Centre approves $27 bn over five years to boost manufacturing
Auto and telecom are among the ten sectors to figure in PLI scheme cleared by Cabinet. The plan is the latest attempt by Asia’s third-largest economy to boost manufacturing – one of the weaker links that has limited its economic growth and exports
NEW DELHI: To give an impetus to the manufacturing sector, the Union Cabinet on Wednesday approved a mega production linked incentive (PLI) scheme for 10 sectors.
The total outlay has been pegged at Rs 1,45,980 crore. Announcing the decision, Union Finance Minister Nirmala Sitharaman said the scheme would entail an expenditure of about Rs 2 lakh crore.
Accordingly, the scheme is expected to attract foreign players, boost production, increase exports and generate employment in the country.
Earlier, the Centre had rolled out a similar scheme for the electronics manufacturing sector, particularly for mobile phone manufacturing, to curb increasing imports.
The concerned sectors will include advanced chemistry cell battery, electronic products, automobiles and auto components, pharma, telecom and networking products, textile, food products, white goods and speciality steel.
Post the announcement, Union Commerce Minister Piyush Goyal tweeted: “Strengthening our vision of Aatmanirbhar Bharat, Govt under PM@NarendraModiaji approves Production Linked Incentive scheme for 10 Sectors. Revolutionising Make in India, this will help create jobs, promote exports and make India the factory of the world.”
An official statement said: “The PLI scheme will be implemented by the concerned ministries or departments and will be within the overall financial limits prescribed. 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 utilised to fund that of another approved sector by the Empowered Group of Secretaries. Any new sector for PLI will require fresh approval of the Cabinet.”
The statement added: “The Prime Minister’s clarion call for an ‘Aatmanirbhar Bharat’ envisages policies for the promotion of an efficient, equitable and resilient manufacturing sector in the country.
“Growth in production and exports of industrial goods will greatly expose the Indian industry to foreign competition and ideas, which will help in improving its capabilities to innovate further.”
It said promotion of the manufacturing sector and creation of a conducive ecosystem will not only enable integration with global supply chains, but also establish backward linkages with the MSME sector in the country.