Budget 2023: These Sectors to Get Big Boost in PLI Scheme!
The central government launched the PLI scheme to promote India’s manufacturing sector. The government has brought 14 sectors under this scheme. It is expected from Budget 2023 that the government can include more sectors under this scheme.
What’s Happening?
Finance Minister Nirmala Sitharaman will present the general budget in Parliament on 1 February. According to a survey by Deloitte, business leaders expect that apart from 14 sectors, the government may bring other industries under the PLI scheme. Business leaders believe that the PLI scheme has been beneficial. Given this, the government may consider increasing its scope.
Production-Linked Incentive (PLI) Scheme
The Government of India introduced the Production-Linked Incentive (PLI) scheme in March 2020 to increase domestic production and reduce the import bill. In this, the government gives incentives to companies based on the sale of products made in India. Apart from inviting foreign companies to set up their business in India, the scheme aims to encourage domestic companies to increase their production there.
For example, China and South Korea are hubs of mobile phone manufacturing. Most mobile phones and their components remain imported into our country, but now the government emphasises manufacturing in India. For the companies which assemble products related to mobile hardware and software in India and export them to other countries, the government will give incentives to such companies to boost production. An allocation of about Rs 2 lakh crore remains allotted for this program.
Sectors Included in the Scheme
The government of India has so far included 14 sectors under this scheme. These include automobiles, auto ancillaries, goods, pharma, textiles, food products, high-efficiency solar PV modules, advanced chemistry cells, and specialty steel.
Sectors Likely to be Included
In December 2022, according to an official, the government may extend the scheme to other sectors, such as toys, bicycles, footwear, vaccine equipment, shipping containers, and telecom products.
According to Business Standard, experts in a survey said that in Budget 2023, the government might announce the inclusion of leather, bicycles, vaccine equipment, and some telecom products in the PLI scheme. The economy of many countries is facing the threat of a slowdown. In such a situation, the government will focus on measures to increase the industry’s growth in the budget.
Conclusion
The PLI scheme is a big step towards India becoming self-reliant. The government remains expected to generate an additional output of Rs 28.15 lakh crore from the scheme.
In April 2022, the government released the data based on the inputs received from different ministries. According to the data, an investment of Rs 2.34 lakh crore had come under this scheme in 14 sectors. It shows that the project is on the right track and can be a win-win position for the companies and the country.
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