PLI scheme is to promote sector champions
Commerce and Industry Minister Piyush Goyal said the seven new Production Linked Incentive (PLI) schemes that that were just approved shows the Government’s commitment to promote manufacturing in India.
Addressing IIM Ahmedabad’s Red Brick Summit 2022 virtually from New Delhi on 1 Oct 2022, Goyal said that the scheme, though not part of the original PLI schemes, has been very well received.
The Minister said, “The idea behind PLI is to promote those champion sectors where we have a comparative and competitive advantages.
“We must get out of the mindset of subsidies and build a resilient and self-reliant business ecosystem that is not dependant on government.”
Goyal pointed out that Micro Small and Medium Enterprises (MSMEs) are the real beneficiaries of the PLI scheme because when a large industry comes up, it brings with it a whole ecosystem of manufacturers and service providers.
“The mainstay of India is MSMEs and the mainstay of MSMEs is large industry which aggregates what our MSMEs are doing and provides them with more opportunities,” he said.
The Minister also assured that every PLI scheme is very carefully and thoroughly assessed in collaboration with Industry before being formulated.
“The PLI was just a kick-start mechanism and therefore needs to have a sunset clause as ultimately the industry needs to be viable and independent.” fiinews.com
