After successfully introducing Production Linked Incentive (PLI) scheme for promoting mobile phone manufacturing in India, the cabinet has approved the PLI scheme for 10 key sectors for enhancing India's manufacturing capabilities and enhancing exports. The sectors include electronic or technology products, Advance Chemistry Cell (ACC) battery manufacturing, automobile and auto components, pharmaceuticals, telecom products, amongst others. "The announcement of PLI scheme for ten sectors by the government today is a major boost for the manufacturing sector," said Dr Sangita Reddy, President, FICCI.
To be implemented by Ministry of Electronics and Information Technology, the PLI scheme for electronic or technology products include semiconductor fab, display fab, laptops, servers, IoT devices and specified computer hardware, with an approved financial outlay of Rs 5,000 crore over a five-year period.
"The Indian government's decision to introduce PLI for laptops is timely and in the right direction. We are confident that it will encourage local manufacturing and further bolster the local PC market, which is already seeing a positive momentum under the current work and learn from home scenarios. Lenovo is committed to local manufacturing with our plant in Puducherry, and we welcome this move by the government," said Rahul Agarwal, CEO and MD, Lenovo India
White goods including ACs and LEDs would fall under the Department for Promotion of Industry and Internal Trade with the approved financial outlay of Rs 6,238 crore for a period of five years. Manish Sharma, President & CEO, Panasonic India & SA and Chairperson FICCI Electronics Manufacturing Committee, tweeted, "This is a game changer! PLI for strategic sectors approved by government! @ficci_india is thankful to the government and industry stands committed. Will enable following: competitive domestic production, faster backward integration and scale up exports #AatmaNirbharBharat."
According to the press release issued by the ministry, 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.
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.
Copyright©2022 Living Media India Limited. For reprint rights: Syndications Today