Speed and scale have to be increased to boost manufacturing: PM
09 March 2021: At a recently held Webinar, the Prime Minister, Narendra Modi said in this year’s budget, a provision of about 2 lakh crore rupees has been made for schemes related to the production-linked incentive (PLI). An average of 5% of production is given as incentive. This means that PLI schemes will lead to production worth $ 520 billion in India in the next five years.
The webinar on Production Linked Incentives scheme was organized by Department for Promotion of Industry and International Trade and NITI Aayog through video conference on 5th March 2021.
The Prime Minister said 13 sectors have been brought under Production Linked Incentives for the first time. PLI benefits the entire ecosystem associated with the sector. With PLI in auto and pharma, there will be very less foreign dependence related to auto parts, medical equipment and raw materials of medicines. He added that the energy sector will be modernized in the country with the help of Advanced Cell Batteries, Solar PV modules and Specialty Steel. Similarly, the PLI for the textile and food processing sector will benefit the entire agriculture sector.
The Prime Minister stressed on the need to take a big leap, increase the speed and scale to boost manufacturing. He said the Government’s thinking is clear – Minimum Government, Maximum Governance and expects Zero Effect, Zero Defect. He emphasized the need to make Indian companies and manufacturing being done in India, globally competitive and also, to create global recognition for our production cost, products, quality and efficiency.
The Prime MInister said that PLI related announcements are being implemented with speed. He said recently approved PLI schemes in IT hardware and Telecom equipment manufacturing will lead to tremendous increase in production and domestic value addition. IT hardware is estimated to achieve 3 trillion rupees worth production in 4 years and domestic value addition is expected to rise from current 5-10% to 20-25% in 5 years. Similarly telecom equipment manufacturing will witness an increase of about 2.5 lakh crore rupees in 5 years. We should be in a position to export worth 2 lakh crore from this, said the Prime Minister.
The Prime Minister said the PLI Scheme would make a major impact to the country’s MSMEs ecosystem by creating the anchor units in every sector that will need a new supplier base across the entire value chain. He urged the industry to join and take advantage of the PLI scheme.