The Home Minister Amit Shah said in tweets that the move is aimed at promoting job creation, linking India to the global value chain & building a self-reliant India. The union cabinet’s approval to introduce the Production-Linked Incentive (PLI) Scheme in 10 key sectors will give the right impetus to the Indian economy and is aimed at promoting job creation. The Home Minister said in tweets that the move is aimed at promoting job creation, linking India to the global value chain & building a self-reliant India.
“Today is a historic day for India as the Union Cabinet under the visionary leadership of PM Narendra Modi ji approved Production Linked Incentive (PLI) for 10 identified sunrise sectors. An incentive of about Rs 200,000 Cr will be provided to them over the next 5 years,” Shah said.
“PLI will give the right impetus to the Indian economy. It’s aimed at promoting job creation, linking India to the global value chain and building a self-reliant India. With this landmark decision of PM @narendramodi, India will become an important manufacturing and investment hub,” he added. He also hailed the CCEA decision regarding viability gap funding.
“I thank PM @narendramodi and Union Cabinet for extending the ‘Viability Gap Funding’ to the social sector on PPP basis. Infrastructure projects related to education, health among others will be given a major boost. This will also lead to the strengthening of the social sector,” he said.
The Union Cabinet on Wednesday gave its approval to introduce the Production-Linked Incentive (PLI) Scheme in the following 10 key sectors for enhancing India’s manufacturing capabilities and exports. The approved financial outlay for the ten sectors over five year period is Rs 1,45,980 crore.
The ten sectors identified under the scheme are–Advanced chemistry cell (ACC) battery (approved financial outlay over a five year period of Rs 18,100 crore), electronic/technology products (Rs 5,000 crore), automobile and auto component (Rs 57,042 crore), pharmaceuticals and drugs (Rs 15,000 crore), telecom and networking products (12,195 crore), textile products (Rs 10,683 crore), food products (Rs 10,900 crore), high efficiency solar photovoltaic modules (Rs 4,500 crore), white goods (ACs and LEDs) (Rs 6,238 crore) and specialty steel (Rs 6,322 crore).
Industry Reaction to Union Cabinet’s PLI scheme to boost manufacturing:
Mr. Rajesh Uttamchandani, Director, Syska Group said, “The announcement by the Union Cabinet approving a mega production linked incentive (PLI) scheme for 10 sectors with an aim to provide much required impetus to the manufacturing sector is a welcome move. For homegrown FMEG companies like Syska Group this is a great initiative that will enable us to further develop solutions in-house and focus on domestic manufacturing and generating further employment opportunities. We are positive that such schemes are set to bolster India’s economic growth by making it truly Atmanirbhar.”
Mr. Kishan Jain, Director at Goldmedal Electricals said, “This initiative will create more opportunities for Indian and global electronic companies to set up operations within the country, increase manufacturing capabilities, boost production and generate employment. This scheme will make Indian manufacturers competitive globally, attract foreign investment and create a roadmap to use cutting-edge technology to enhance exports and making India a primary leader in the global supply. All of these steps will help homegrown companies such as Goldmedal Electricals towards further enhancing our growth strategy and help India to become a global manufacturing hub.”