New Delhi: Prime Minister Narendra Modi has said the Production-Linked Incentive (PLI) scheme, announced in July 2020, is likely to increase India’s production by USD 520 billion in the next five years.
The scheme aims to give companies incentives on incremental sales (over FY2019-20) from products manufactured in domestic units.
Addressing a webinar on Friday, he said the scheme aims to boost domestic manufacturing and exports and increase job creation.
The government, Modi said, is relentlessly working on reforms to boost domestic manufacturing and exports.
He said the PLI scheme would make a major impact to India’s micro, small and medium enterprises (MSMEs) ecosystem by creating the anchor units in every sector that will need a new supplier base across the entire value chain.
About Rs. 2 lakh crores have been earmarked in the FY22 Budget for the PLI scheme for the next five years. “There is an expectation that the scheme would result in increasing the production by about USD 520 billion in the next five years”, he said.
The PM said the current workforce in the sectors, which will avail the benefits of the PLI scheme, is also expected to be doubled with fresh job creation. It will boost manufacturing in sectors from telecommunications to automobile to pharmaceuticals, he said.
The government is working to reduce compliance burden, improve ease of doing business, and cut down logistics costs for the industry, he asserted.
(VP)
