India's production-linked incentive (PLI) scheme to encourage domestic manufacturing has generated investment commitments of ₹2.34 lakh crore across 14 sectors, according to data collated from various ministries.
Automobile and auto components, advanced chemistry cell batteries, specialty steel and high-efficiency solar panels have attracted the maximum interest.
The government expects the scheme to generate additional output worth Rs 28.15 lakh crore and 6.45 million new jobs over the next five years. There has been a tremendous response across all the sectors for which the scheme has been implemented, said a senior government official. Total outlay for the scheme across the 14 sectors is Rs 1.97 lakh crore.
The programme, launched two years ago, offers a cash incentive for three to five years on the incremental sale of goods made in India over the determined base-year sales. Additionally, the identified beneficiaries are required to commit to a certain minimum investment in India.
"The PLI scheme is an initiative that has the potential to significantly enhance the scale of manufacturing in India - it has started off quite well," said Pawan Goenka, chairman of SCALE Committee and former managing director of Mahindra & Mahindra.
Sustaining Exports
"Going forward, we will need to have flexibility to make changes, wherever necessary, in terms of adapting to emerging requirements," Goenka said. The Steering Committee for Advancing Local Value-Add and Exports (SCALE) has been formed by the ministry of commerce and industry and works with the Department for Promotion of Industry and Internal Trade.
"In the next few years, PLI units will have additional production to sustain exports on a sustainable basis," said Ajay Sahai, director general of the Federation of Indian Export Organisations. "Companies will procure more from domestic sources, which will help our ancillaries to grow and maintain necessary standards to eventually become suppliers to the world." According to Sahai, while the scheme has picked up well across sectors, there is some apprehension among textile manufacturers.
Source Name:-Economic Times