PLI has received positive feedback, says Goyal
The Government aims to double its exports of auto components to US$30 billion by 2026 from the current US$15 billion, Commerce and Industry Minister Piyush Goyal said at the reviews of work of Steering Committee on Advancing Local value-add and Exports (SCALE).
Deliberating on ways to enhance competitiveness and leverage the untapped potential of Indian industries, he told stakeholders to have best quality products and world class labs for testing as India embarks on an unprecedented global trade engagement.
Underlining the need to reduce logistics costs to make factory products competitive in global markets, he has also asked the States to reduce State-specific disabilities.
The Commerce Minister also urged the States to undertake suitable amendments in labour laws to take advantage of PLIs induced manufacturing growth. “Cost of doing business needs to be assessed State-wise.”
Goyal noted that there has been a very positive industry feedback about the various Production Linked Incentives (PLI) schemes announced by the Government in various sectors. The schemes have induced post-Covid industrial and economic recovery.
Observing that not every country is able to do well in all areas of businesses, Goyal said that India has to choose niche and specific areas and excel in it. “Take comparative cost advantage in key areas.”
The Minister identified key focus areas for improvement to achieve robust growth of manufacturing sector. These areas include Land, Skill Development, Government and Industry partnership and compliance of Model Labour Law.
Encouraging the Industry to go for technology transfer and indigenization of chip manufacturing, Goyal said there are great possibilities emerging in new sectors such as drones industry.
He called for proper regulations to be worked out by the Ministry of Civil Aviation for the growth of this niche sector.
Calling upon the electronics industry to aim for local value addition in TV manufacturing from the current 28% to 43.7%, Goyal said the Set Top Box (STB), CCTV, Mobile Handsets and Television manufacturers should come out with plans on how localization can be achieved.
He lauded the Air Conditioner manufacturers for achieving a great degree of localization and also switching over to CFL-free cooling technology.
On the switchover to clean energy in automobiles sector, the Minister stressed on ramping up indigenous production of magnets and electric motors. #manufacturing #investment #technology /fiinews.com
