MSMEs welcome Extension of PLI Scheme to 10 Sectors

A Production-Linked Incentive  (PLI) Scheme worth around Rs 1.45 lakh crore was approved by the Indian Government for 10 sectors; this settlement has been welcomed by beneficiary companies.

Union Finance Minister Nirmala Sitharaman proclaimed the settlement and stated that the scheme would require an expenditure of about Rs 2 lakh crore. Therefore, it is expected that the scheme attracts foreign players, boosts production, increases exports and generates employment in the country. Besides improving the micro, small and medium enterprises (MSME) the scheme will help in developing the skills by creating the job opportunities all over the country amid such a challenging and tiring situation.

The Government has approved the new sectors which are ACC battery, electronic/technology products, automobiles & auto components, pharmaceuticals drugs, Telecom & networking products, Textile products-MMF segment and technical textiles, food products, high efficiency solar PV modules, white goods (ACs & LED) and speciality steel.

Rahul Agarwal, CEO and MD, Lenovo India commented on this announcement that: “The Indian government's decision to introduce PLI for laptops is timely and in the right direction. We are confident that it will encourage local manufacturing and further bolster the local PC market, which is already seeing a positive momentum under the current work and learn from home scenarios. Lenovo is committed to local manufacturing with our plant in Puducherry, and we welcome this move by the government.”

Assocham Secretary General, Deepak Sood expressed that the move gives a boost to India's market to become a "global manufacturing hub". He added: "This would have a huge multiplier effect on economic activities, with a sizable generation of employment across different sectors such as automobiles, electronics, textiles, food products, and telecom. In sectors like pharmaceuticals, chemicals, solar equipment, the PLI would also give a big leap towards scientific research and development."

The announcement is a resolve of government, from the point of view of SP Kochhar, Director General of the Cellular Operators Association of India (COAI), to enhance the growth of domestic industry by making it faster, easier and more competitive to conduct business. He stated that: "We are yet to receive details of the scheme from the DoT, however, we appreciate the proposed outlay of Rs 12,000 crore for telecom and networking equipment and are confident that the government would have designed the scheme is such a manner to ensure that the demand for telecom equipment from the local market is enhanced and remains robust as well as exports from India are suitably supported and incentivised."

The advanced chemistry cell battery, electronic products, automobiles and auto components, pharma, telecom and networking products, textile, food products, white goods and specialty steel are the concerned sectors.

According to the official statement, "The PLI scheme will be implemented by the concerned ministries or departments and will be within the overall financial limits prescribed. The final proposals of PLI for individual sectors will be appraised by the Expenditure Finance Committee (EFC) and approved by the Cabinet,”