India’s cabinet on Wednesday announced a production-linked incentive (PLI) programme worth Rs 2 lakh crore ($27 billion) for as many as 10 sectors, including food processing, with the aim of establishing the country as manufacturing hub.
“The scheme will make Indian manufacturers globally competitive, attract investment and enhance exports, said Prakash Javadekar, minister for human resource development.
The PLI scheme will include advance chemistry cell battery, food products, textile, speciality steel, pharma, telecom and networking products, automobile and auto components, electronic products and white goods.
Earlier, the government had rolled out a similar scheme for electronic products, particularly for mobile phone manufacturing to curb increasing imports.
Among the sectors that were offered the PLI scheme on Wednesday, the automobiles and auto components sector garnered the lion’a share with an outlay of Rs 57,000 crores.
“The announcement of PLI scheme for 10 sectors by the government today is a major boost for the manufacturing sector. The sectors covered under the PLI scheme are strategic, technology intensive and also important from the perspective of employment generation in the country,” said Sangita Reddy, president of the Federation of Indian Chambers of Commerce and Industry (FICCCI).
“Indian economy offers huge opportunity for these sectors not just from the domestic market perspective, but also to make India an export hub for these products. FICCI thanks the government for the announcement and also hopes to hear about such progressive schemes for more sectors,” she added.
India has set itself a goal of emerging as self-reliant in manufacturing and establish the country as a global manufacturing hub.
The country has been over-dependent on China and other countries for a range of products, including pharmaceutical bulk drugs and electronic components.
Its efforts have gathered pace since the outbreak of the Coronavirus pandemic, which disrupted global supply chains. Military tensions with China that has resulted in a border standoff between the two countries troops have further galvanised the efforts.