Bikky Khosla | 16 Mar, 2021
Centre last week started inviting applications for the second round of
large-scale electronics manufacturing under the production-linked incentive
(PLI) scheme, which is expected to promote production of high value products in
the country and increase value addition in exports. The application window will
remain open till March 31 which may be further extended. The first round of the
scheme, which was open for receiving applications till July 31, attracted
participation from several global majors.
Prime Minister Modi, addressing a webinar, said that the scheme is expected to
increase India's production by USD 520 billion in the next five years. Sounds
encouraging. The scheme received Cabinet approval last year and in this year's
Budget, about Rs 2 lakh crore was earmarked for it for the next five years.
This amount reflects the priority of the government. The prime minister also
pointed out that industrial incentives are now targeted and performance based,
instead of being open ended input-based subsidies, under this scheme.
last few years, several steps have been taken to boost manufacturing. In Budget
2021-22, announcements have been made on setting up seven Mega Investment
Textiles Parks. Also, the National Infrastructure Pipeline is expected to boost
infrastructure. Similarly, measures involving industrial corridors, National
Master Plan on multi-modal connectivity infrastructure, Fund of Funds and Seed
Fund, Industrial development schemes for industrially backward regions, etc.
are welcome decisions.
to latest data, our manufacturing activity eased a little in February compared
to January. However, overall the sector is currently doing good as firms lifted
input inventories at record pace with strong growth in sales and production. No
doubt, the economy is recovering, and so is the sector, but what will be
decisive in the long-run is concentrated effort from the government to promote
the sector, with focus on cutting down compliance burden and improving ease of