Centre unveils PLI to encourage domestic manufacturing in 10 more sectors
Published on
Nov-06-2020
· Centre unveils incentives to boost manufacturing- The Hindu- 12th November
· Auto to tech,10more sectors to gain from hike in PLI allocation - The Indian Express- 12th November
· Big Incentives for big firms to boost exports primarily- Financial Express- 12th November
(GS 2 Government policies and interventions; GS 3 Indian Economy, Changes in industrial policy)
In News
The Union Cabinet approved Production Linked Incentive (PLI) scheme worth up to Rs 1.46 lakh crore for 10 key sectors in a bid to boost India’s manufacturing capabilities and enhancing exports.
Existing PLI Schemes
· Moblie phone, specified electronics components
· Critical key starting materials, (Active Pharmaceutical Ingredient) APIs
· Medical Devices
Which are the new additions?
10 key sectors for enhancing India’s manufacturing capabilities and enhancing exports in sync with Atmanirbhar Bharat are :
|
Priority |
Sectors |
Implementing Ministry/Department |
Approved financial outlay over a five-year period Rs. Crore |
|
1. |
Advance Chemistry Cell (ACC) Battery |
NITI Aayog and Department of Heavy Industries |
18100 |
|
2. |
Electronic/Technology Products |
Ministry of Electronics and Information Technology |
5000 |
|
3. |
Automobiles & Auto Components |
Department of Heavy Industries |
57042 |
|
4. |
Pharmaceuticals drugs |
Department of Pharmaceuticals |
15000 |
|
5. |
Telecom & Networking Products |
Department of Telecom |
12195 |
|
6. |
Textile Products: MMF segment and technical textiles |
Ministry of Textiles |
10683 |
|
7. |
Food Products |
Ministry of Food Processing Industries |
10900 |
|
8. |
High Efficiency Solar PV Modules |
Ministry of New and Renewable Energy |
4500 |
|
9. |
White Goods (ACs & LED) |
Department for Promotion of Industry and Internal Trade |
6238 |
|
10. |
Speciality Steel |
Ministry of Steel |
6322 |
|
|
|
Total |
145980 |
What the scheme seeks to achieve?
· Make domestic manufacturing competitive and efficient.
· Create economies of scale.
· Foster India’s place in global supply chain.
· Attract investment in core manufacturing and cutting-edge technologies.
· Make India an integral part of the global supply chain.
How will it work?
· The PLI scheme will be implemented by the concerned ministries/departments and will be within the overall financial limits prescribed.
· 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 utilized 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.
Benefits of PLI
· It 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.
· Promotion of the manufacturing sector and creation of a conducive manufacturing ecosystem will not only enable integration with global supply chains but also establish backward linkages with the MSME sector in the country.
· It will lead to overall growth in the economy and create huge employment opportunities.
Would it promote protectionism/ Is it inward looking?
Not at all, India aims to build its own strength and link it to global supply chain ensuring shared prosperity for allwithout contravening the WTO rules that usually prohibit export subsidies.
