Goyal assures of Government handholding
The Production-Linked Incentive (PLI) Scheme introduction in the 10 key sectors for Enhancing India’s Manufacturing Capabilities and Enhancing Exports will help India become strong, self-sufficient, self-reliant, meet domestic market needs and improve exports, says Commerce and Industry Minister Piyush Goyal.
The increase in scheme follows the encouraging response received for PLI for telecom, APIs and medical devices, said Goyal of the PLI scheme extension on 11 Nov 2020.
He also assured that the government will do the hand-holding for these sectors over the next five years.
The viability gap funding scheme will bring private investment in the social sectors like drinking water, health and education.
The Cabinet approved PLI for 10 key sectors for Enhancing India’s Manufacturing Capabilities and Enhancing Exports.
The Cabinet approved:
Rs.18,100 crore for Advanced Chemistry Cell (ACC) battery by NITI Aayog and Department of Heavy Industries,
Rs.5,000 crore for Electronic/Technology products by Ministry of Electronics and Information Technology,
Rs.57,042 crore for Automobiles & Auto Components by Department of Heavy Industry,
Rs.15,000 crore for pharmaceuticals drugs by Department of Pharmaceuticals,
Rs.12,195 crore for Telecom and Networking Products by Department of Telecom,
Rs.10,683 crore for Textile Products: MMF segment and technical textiles by Ministry of Textiles,
Rs.10,900 crore for Food Products by Ministry of Food Processing Industries,
Rs.4,500 crore for High-Efficiency Solar PV Modules by Ministry of New and Renewable Energy,
Rs.6,238 crore for White Goods (ACs and LED) by Department of Industry and International Tarde, Rs.6,322 crore for Specialty Steel by Ministry of Steel.
The PLI scheme will be implemented by the concerned ministries and 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 utilized 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 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; ensure efficiencies; create economies of scale; enhance exports and make India an integral part of the global supply chain.
ACC battery manufacturing represents one of the largest economic opportunities of the twenty-first century for several global growth sectors, such as consumer electronics, electric vehicles, and renewable energy. The PLI scheme for ACC battery will incentivize large domestic and international players in establishing a competitive ACC battery set-up in the country.
Additionally, the Government’s push for data localization, the Internet of Things market in India, 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.
The automotive industry is a major economic contributor in India. The PLI scheme will make the Indian automotive Industry more competitive and will enhance the globalization of the Indian automotive sector.
The Indian pharmaceutical industry is the third-largest in the world by volume and 14th largest in terms of value. It contributes 3.5% of the total drugs and medicines exported globally.
India possesses the complete ecosystem for the development and manufacturing of pharmaceuticals and a robust ecosystem of allied industries. The PLI scheme will incentivize the global and domestic players to engage in high-value production.
Telecom equipment forms a critical and strategic element of building a secured telecom infrastructure and India aspires to become a major original equipment manufacturer of telecom and networking products.
The PLI scheme is expected to attract large investments from global players and help domestic companies seize emerging opportunities and become big players in the export market.
The Indian textile industry is one of the largest in the world and has a share of ~5% of global exports in textiles and apparel. But India’s share in the manmade fibre (MMF) segment is low in contrast to the global consumption pattern, which is majorly in this segment.
The PLI scheme will attract large investments in the sector to further boost domestic manufacturing, especially in the MMF segment and technical textiles.
The growth of the processed food industry leads to a better price for farmers and reduces high levels of wastage. Specific product lines having high growth potential and capabilities to generate medium- to large-scale employment have been identified for providing support through the PLI scheme.
Large imports of solar PV panels pose risks in supply-chain resilience and have strategic security challenges considering the electronic (hackable) nature of the value chain.
A focused PLI scheme for solar PV modules will incentivize domestic and global players to build large-scale solar PV capacity in India and help India leapfrog in capturing the global value chains for solar PV manufacturing.
White goods (air conditioners and LEDs) have a very high potential of domestic value addition and making these products globally competitive. A PLI scheme for the sector will lead to more domestic manufacturing, generation of jobs and increased exports.
Steel is a strategically important industry and India is the world’s second-largest steel producer in the world. It is a net exporter of finished steel and has the potential to become a champion in certain grades of steel. A PLI scheme in Specialty Steel will help in enhancing manufacturing capabilities for value-added steel leading to an increase in total exports.
The above will be in addition to the already notified PLI schemes in the following sectors:
Rs.40,951 crore for Mobile Manufacturing and Specified Electronic as well as Component by MEITY,
Rs.6,940 crore for Critical Key Starting materials/Drug Intermediaries and Active Pharmaceutical Ingredients by Department of Pharmaceuticals,
Rs.3,420 crore for Manufacturing of Medical Devices by Department of Pharmaceuticals.
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, said the Cabinet.
Promotion of the manufacturing sector and the creation of a conducive manufacturing ecosystem will not only enable integration with global supply chains but also establish backward linkages with the MSME sector in the country.
It will lead to overall growth in the economy and create huge employment opportunities. #manufacturing #investments #projects #makeinIndia #exports /fiinews.com
