Union Cabinet approves PLI scheme for ten key sectors to boost manufacturing

The Union Cabinet on November 11, 2020, approved the Production-Linked Incentive (PLI) Scheme for ten major sectors including pharmaceutical drugs, auto components, and automobiles for enhancing India’s manufacturing capabilities and export.

The financial outlay approved by the government for the 10 sectors over a period of 5 years is worth nearly Rs. 2 lakh crores. The Union Minister, Prakash Javadekar also informed that the Production Linked Incentive Scheme will also help in creating jobs. He also added that manufacturing is 16% of GDP and it needs to increase.

Cabinet chaired by PM @narendramodi today approved Production Linked Incentive (PLI) scheme of nearly 2 lakh cr, for 🔟 key sectors.

इस निर्णय से देश में उत्पादन, रोजगार और निर्यात बढ़ेगा।#CabinetDecisions #AatmaNirbharBharat pic.twitter.com/P6nAp7z7tI

— Prakash Javadekar (@PrakashJavdekar) November 11, 2020

10 Sectors under PLI Scheme:

Significance of PLI scheme for manufacturing:

The Union Minister, Prakash Javadekar during the media briefing informed that there has been a shortcoming that manufacturing in India is only 16%b of GDP. Many efforts have also been made to increase manufacturing but none of them were very successful.

The PLI Scheme will make the manufacturers in India globally competitive, will attract investment, and in return enhance exports. The government plans on producing global champions with the scheme.

While Finance Minister, Nirmala Sitharaman stated that the Union Cabinet has decided to create more PLIs for making sure that job creation happens, India becomes self-reliant and part of the global value chain, and sunrise sectors get a boost.

Sectors covered under PLI scheme:

The 10 sectors that have been covered under the PLI scheme are technology-intensive, strategic, and significant from the perspective of employment generation in India.

The Indian economy offers a huge opportunity for these selected sectors not just from the perspective of the domestic market but also for making India an export hub for these products. According to the President of FICCI, Dr. Sangita Reddy, such progressive schemes can also be applied for more sectors in the country.