“Even during Pandemic, the sector manufactured goods worth Rs 35000 crore last year, saw a fresh investment of about Rs 1300 crore and created thousands of new jobs in this sector”
The Prime Minister of India, Narendra Modi addressed a webinar on Production Linked Incentives scheme organized by Department for Promotion of Industry and International Trade and NITI Aayog through video conference today. He stressed on the need to take a big leap, increase the speed and scale to boost manufacturing. He cited examples around the world where countries have accelerated the development of the country by increasing their manufacturing capacities. He said increasing manufacturing capacities would increase Employment Generation in the country proportionally.
“We have to attract cutting edge technology and maximum investment in the sectors related to our core competency,” said the Prime Minister.
Underlining the difference between the earlier schemes and the schemes of the current government, the Prime Minister said, “Earlier, industrial Incentives used to be open ended input based subsidies, now they have been made targeted and performance based through a competitive process.”
It is to be noted here that 13 sectors have been brought under Production Linked Incentives for the first time. He added that the energy sector will be modernized in the country with the help of Advanced Cell Batteries, Solar PV modules and Specialty Steel. The Prime Minister highlighted that in this year’s budget, a provision of about 2 lakh crore rupees has been made for schemes related to the PLI scheme.
An average of five per cent of production is given as incentive. This means that PLI schemes will lead to production worth $ 520 billion in India in the next five years. It is also estimated that sectors for which the PLI scheme has been created will witness doubling of the workforce.
He said recently approved PLI schemes in IT hardware and Telecom equipment manufacturing will lead to tremendous increase in production and domestic value addition. IT hardware is estimated to achieve three trillion rupees worth production in four years and domestic value addition is expected to rise from current five to 10 percent to 20-25 percent in five years. Similarly telecom equipment manufacturing will witness an increase of about 2.5 lakh crore rupees in five years.
“We should be in a position to export worth two lakh crore from this,” said the Prime Minister.
Mentioning about the PLI schemes for mobile phones, “Even during Pandemic, the sector manufactured goods worth Rs 35000 crore last year, saw a fresh investment of about Rs 1300 crore and created thousands of new jobs in this sector.”
The Prime Minister said the PLI Scheme would make a major impact to the country’s MSMEs ecosystem by creating the anchor units in every sector that will need a new supplier base across the entire value chain. He urged the industry to join and take advantage of the PLI scheme. He said the focus of the industry should be on creating Best Quality Goods for the country and the world. He urged the industry to innovate according to the needs of the fast changing world, increase our participation in R&D, upgrading the manpower skills and use of new technology.