On Wednesday, the union cabinet approved a ₹ 2 lakh crore production linked investment (PLI) scheme. This scheme has been approved for 10 sectors in order to boost domestic manufacturing in the country.
After the meeting, Union minister Prakash Javadekar addressed the media as he said, “The Union Cabinet has approved PLI scheme for ten key sectors for enhancing India’s manufacturing capabilities and enhancing exports.”
He added, “The scheme will make Indian manufacturers globally competitive, attract investment and enhance exports.”
The ten sectors for whom the PLI scheme got approved are:
Advance chemistry cell (ACC) battery- ₹ 18,100 crore
Electronics and technology products- ₹ 5,000 crore
Automobiles and auto components- ₹ 57,042 crore
Pharmaceutical and drugs- ₹ 15,000 crore
Telecom and networking products- ₹ 12,195 crore
Textile products- ₹ 10,683 crore
Food products- ₹ 10,900 crore
High efficiency solar PV models- ₹ 4,500 crore
White goods- ₹ 6,238 crore
Specialty steel- ₹ 6,322 crore
The Finance Ministry of the country Nirmala Sitharaman has said on their decision of the PLI scheme that the government through the scheme would provide great incentives for manufacturers and help the country move towards the objective of ‘Aatmanirbhar Bharat’ (self-reliant India).
Nirmala Sitharaman said, “The Cabinet has taken two very important decisions… Both of which, if you ask me at a time like this, is going to give a right impetus to the economy, because we are looking at Aatmanirbharta.” She also added that the government would help to make India part of the global value chain.
Indian Prime Minister Narendra Modi tweeted, “Cabinet decision of PLI scheme for 10 sectors will boost manufacturing, give opportunities to youth while making India a preferred investment destination. This is an important step towards improving our competitiveness & realizing an Aatmanirbhar Bharat.”
Cabinet decision of PLI scheme for 10 sectors will boost manufacturing, give opportunities to youth while making India a preferred investment destination. This is an important step towards improving our competitiveness & realising an Aatmanirbhar Bharat. https://t.co/KDQvMEBubJ
— Narendra Modi (@narendramodi) November 11, 2020
She also said that this PLI scheme would help to provide encouragement to the critical sunrise sectors by ensuring necessary support from the government in addition to creating jobs and linking India to the global value chain.
According to an official statement, the approved financial outlay over the five-year period for these 10 sectors will be ₹ 1,45,980 crore. Another PLI scheme with an outlay of ₹ 51,311 crores has also been approved by the government earlier.
The government a few weeks back had approved another PLI scheme specially designed for the development of the electronics manufacturing sector especially mobile phones. This was done to make India grow into a mobile manufacturing center in the world alongside countries like Vietnam and China and also to increase exports of mobile phones. Popular manufacturers like Foxconn have claimed the PLI scheme. On the other hand, mobile manufacturers in India like Lava and Micromax has also been able to claim the deal.
The government has said that the PLI scheme would be taken care of and implemented by the concerned departments or ministries. The final proposals of PLI for individual sectors will be appraised by the expenditure finance committee (EFC) and approved by the Cabinet.