Union Cabinet approved incentives worth Rs 2 trillion to boost Manufacturing and Export
The Union Cabinet on Wednesday approved spending Rs 2 lakh crore on production-linked incentives to boost domestic manufacturing in 10 sectors.
Briefing reporters after a meeting of the Cabinet, Information and Broadcasting Minister Prakash Javadekar said the production-linked incentives will be offered for sectors such as white goods manufacturing, pharmaceutical, specialised steel, auto, telecom, textile, food products, solar photovoltic and cell battery.
The aim of the production-linked incentive scheme is to boost manufacturing in the 10 designated sectors and make Indian manufacturers globally competitive, attract investment in the areas of core competency and cutting-edge technology; ensure efficiencies; create economies of scale; enhance exports and make India an integral part of the global supply chain, a government statement said.
“The 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,” the statement said.
“Promotion of the manufacturing sector and the 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,” it added.
10 sectors to benefit from PLI scheme
1) Advance Chemistry Cell (ACC) Battery
2) Electronic/Technology Products
3) Automobiles & Auto Components
4) Pharmaceuticals drugs
5) Telecom & Networking Products
6) Textile Products: MMF segment and technical textiles
7) Food Products
8) High-Efficiency Solar PV Modules
9) White Goods (ACs & LED)
10) Speciality Steel