The host of financial and digital reforms undertaken by the government along with the enhanced coverage of the Production Linked Incentive (PLI) scheme have the potential to catapult India as a global manufacturing hub and generate many jobs, Union Minister Anurag Singh Thakur said on Tuesday.
Last month, the Cabinet approved the PLI scheme for 10 key sectors, including telecom, automobiles and pharmaceuticals to give an impetus to the manufacturing industry. The scheme would entail an expenditure of about Rs 2 lakh crore and is expected to attract substantial capital inflows.
"The PLI scheme is something I truly believe that will transform the manufacturing sector...every single sector chosen under the PLI has the opportunity to become a game-changer and have a multiplier impact on the Indian economy," the minister of state for finance said at a virtual conference organised by CII.
Promotion of manufacturing and creation of a conducive ecosystem will not only enable integration with the global supply chains but also establish backward linkages with the MSME sector, Thakur added.
Noting India's rapid progress in the financial technology space, the minister said the country is now among the fastest growing fintech markets in the world and use of cutting-edge fintech products has enabled the provision of agriculture credit at a much lower cost to farmers.
"The government has also laid a digital highway of growth for the banking and financial sector by connecting India's villages with high-speed optic fibre network. This has enabled fast adoption of digital payments among the large Indian populace," he said. Thakur further said the Narendra Modi government is known for setting targets and achieving them in record time.