India's Production Incentive Program (PLI), which aims to stimulate domestic production, has raised investment commitments by Rs 2.34 crore across 14 sectors, according to data compiled by various ministries.
Automobiles and their components, advanced chemical batteries, special steel and high-efficiency solar panels are what have generated the most interest.
The government expects the scheme to generate Rs.28.15 million in additional production and create 6.45 million new jobs over the next five years. According to a senior government official, the reaction of all sectors in which the program was implemented caused a strong reaction. The total cost of the program in 14 sectors is 1.97 million rupees.
Launched two years ago, the program offers three to five years of cash incentives for additional sales of Indian-made products in excess of the established annual baseline. In addition, the selected beneficiaries are required to make a certain minimum investment in India.
“The PLI program is an initiative that has the potential to significantly increase production in India - a very good start,” said Pawan Goenka, SCALE Chair and former CEO of Mahindra & Mahindra.
Image Source: The Economic Times
“In the future, we will have to be flexible enough to make changes as necessary to adapt to the new requirements,” Goenka said. The Steering Committee for Enhancement of Domestic Value Added and Exports (SCALE) was established by the Ministry of Trade and Industry and works in cooperation with the Ministry of Industry and National Trade Development.
“Over the next few years, the PLI divisions will have additional production to support sustainable exports,” said Ajay Sahi, Executive Director of the Federation of Export Enterprises of India. "Companies will have more internal sourcing, which will help our suppliers' factories grow and maintain the standards needed to eventually become global suppliers." Sahai said there are some concerns among textile manufacturers, although the program has been well received across industries. "We need to give the plan a little more time to see if any changes are needed," he said. The program aims to improve India's manufacturing capacity and exports
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