The Union Cabinet approved on Wednesday production-related incentives (PLI) worth up to ₹Rs 2 million lakh for 10 manufacturing sectors over the next five years. “This move will enhance India’s manufacturing capabilities,” Union Minister Prakash Javadekar said in announcing the decision. “The scheme will make Indian manufacturers globally competitive, attract investment and improve exports,” he added.
The 10 key sectors that will benefit from the production-linked incentive include automobiles and auto components, pharmaceuticals, specialty steels, capital goods, technology products, home appliances (AC and LED), telecommunications and network products, textiles, solar energy. high efficiency. Photovoltaic modules and advanced battery cells.
To drive growth in the private sector, the central government previously established an empowered group of secretaries under Cabinet Secretary Rajiv Gauba. The government think tank NITI Aayog identified 10 sectors as key sectors that will help attract investment at a time when global supply chains are affected and, in the long term, help shore up revenues.
The critical sunrise sector will receive the necessary support from the government through the PLI scheme, said Finance Minister Nirmala Sitharman. Financial support aimed at bringing investments to the country and making production in the country attractive, added the Minister of Finance. The final proposal of the PLI scheme for individual sectors will be approved by an empowered finance committee and a cabinet of the Union. Interested departments and the minister will start implementing schemes immediately, Sitharaman added.
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