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The cabinet led by Prime Minister Narendra Modi today announced Rs 2 lakh crore of production-linked incentives for 10 major manufacturing areas ahead of Diwali. The government said the move will help increase production, exports and employment in the country, supporting the Atmanirbhar Bharat. Union Minister Prakash Javadekar said that while foreign mobile phone manufacturers have come to manufacture in India, domestic companies such as Lava, Micromax, Karbonn, etc. they will also benefit from the plan. He added that the government aims to prepare world champions.
The ten selected areas are Advanced chemistry cell battery; Electronic / technological products; Automobiles and automobile components; Pharmaceutical drugs; Telecommunications and network products; Textile products; Food products; High efficiency solar photovoltaic modules; Home appliances (AC and LED); and special steels. The government said the final PLI proposals for individual sectors will be evaluated by the Expenditure Financing Committee (EFC) and approved by the Cabinet. Savings, if any, from an approved sector’s PLI scheme can be used to fund another approved sector, while any new sector to PLI will require new Cabinet approval.
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The cabinet said that the PLI scheme in these 10 key specific sectors will make Indian manufacturers globally competitive and attract investment in the areas of core competence and cutting edge technology. He added that the measure will also guarantee efficiencies; create economies of scale; improve exports; and make India an integral part of the global supply chain. Meanwhile, the government said that India is expected to have a $ 1 trillion digital economy by 2025.
While the government push for data localization, the Internet of Things market in India and projects such as Smart City and Digital India are expected to increase demand for electronic products, the PLI scheme will boost the production of electronic products in India. , he stressed. . Finance Minister Nirmala Sitharaman clarified once again that Atmanirbhar Bharat does not mean looking inward, as the government wants to make India a manufacturing hub.
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