Interim Budget 2024: Govt focuses on Make in India, PLI allocation surges for several manufacturing sectors

On Thursday, Union Finance Minister Nirmala Sitharaman presented the Interim Budget 2024, outlining key initiatives to propel India into a developed nation by 2047. The Budget underscored the government's commitment to the "Make in India" campaign, particularly highlighting efforts to establish India as a hub for semiconductor and electronics manufacturing. Notably, allocations for the Production Linked Incentive (PLI) Scheme saw substantial increases across various sectors.

In the Electronics and Information Technology sector, the Budget allocated Rs 6200 crore for the Production Linked Incentive Scheme (PLI) under the Ministry of Electronics and Information Technology (MEITY), a significant rise from the previous year's Rs 4560 crore.

For the development of the Semiconductors and Display Manufacturing Ecosystem, the government announced Rs 6903 crore for FY25, marking a 360% increase from the previous year's spending of Rs 1503 crore.

In the Automobile sector, the PLI Scheme witnessed a remarkable surge, with the Budget allocation for FY25 increasing by 623% to Rs 3,500 crore from Rs 484 crore in the FY24 revised estimates.

The PLI Scheme for the Food Processing Industry saw a 26% increase, reaching Rs 1,444 crore from Rs 1,150 crore in FY24.

Similarly, the Pharma sector's allocation for the PLI Scheme increased by 26% to Rs 2,143 crore from Rs 1,696 crore in FY24.

Shauryam Gupta, CEO of Rupeezy, praised the Budget for its commendable fiscal responsibility and significant investments in infrastructure. The Budget emphasized affordable housing, clean energy, and technological advancement as key priorities, aligning with the government's vision for sustainable development.

Aditya Damani, Founder and CEO of Credit Fair, lauded the creation of a Rs 1-lakh crore innovation fund for sunrise domains, describing it as a significant boost for the startup industry. Damani also highlighted the extension of tax exemptions for fintechs and investments by sovereign wealth and pension funds, emphasizing policy stability.

Maulik Manakiwala, Partner, Indirect Tax, BDO India, noted the Budget's focus on promoting the shift to Electric Vehicles (EV) through the expansion of the EV charging network. He anticipates increased opportunities for small vendors in the manufacturing, installation, and maintenance of EV charging networks, contributing to the growth of the electric vehicle industry.

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