Budget 2023: PLI Schemes May Get BIG Boost! Increased Allocation & More Sectors Likely

As per Invest India, the national investment promotion and facilitation agency, 14 key sectors have been identified by the government of India under the PLI scheme.

Written by: India.com Business Desk Edited by: Sankunni K

Published: January 18, 2023, 11:45 AM IST

Share

Share Article

• Facebook
• WhatsApp
• X
• Email
• Telegram
• Linkedin

https://www.india.com/business/budget-2023-pli-schemes-may-get-big-boost-increased-allocation-more-sectors-likely-5858915/ Copy

Budget 2023: PLI Schemes May Get BIG Boost! Increased Allocation & More Sectors Likely

New Delhi: The Modi government is likely to ‘substantially’ increase the allocation for ongoing Production-Linked Incentive (PLI) schemes in the budget session that will take place on 1 February 2023, Economic Times reported quoting people with knowledge of the matter. It added that some new sectors may be included in the programme that seeks to boost domestic manufacturing, aid exports, and spur investment in the country.

As per Invest India, the national investment promotion and facilitation agency, 14 key sectors have been identified by the government of India under the PLI scheme. They are:

1. Key Starting Materials (KSMs)/Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs): Department of Pharmaceuticals
2. Large-Scale Electronics Manufacturing: Ministry of Electronics and Information Technology
3. Manufacturing of Medical Devices: Department of Pharmaceuticals
4. Electronic/Technology Products: Ministry of Electronics and Information Technology
5. Pharmaceuticals drugs: Department of Pharmaceuticals
6. Telecom & Networking Products: Department of Telecommunications
7. Food Products: Ministry of Food Processing Industries
8. White Goods (ACs & LED): Department for Promotion of Industry and Internal Trade
9. High-Efficiency Solar PV Modules: Ministry of New and Renewable Energy
10. Automobiles & Auto Components: Department of Heavy Industry
11. Advance Chemistry Cell (ACC) Battery: Department of Heavy Industry
12. Textile Products: MMF segment and technical textiles: Ministry of Textiles
13. Specialty Steel: Ministry of Steel
14. Drones and Drone Components: Ministry of Civil Aviation

The PLI scheme was launched by the Narendra Modi-led NDA government in 2020. Finance Minister Nirmala Sitharaman announced the launch of the scheme for KSMs, Large-Scale Electronics Manufacturing and Manufacturing of Medical Devices in March 2020. In November 2020, ten other sectors were included in the scheme and in September 2021, Drones and Drone Components sector was also included.

The PLI scheme was introduced with an objective to make domestic manufacturing globally competitive. It also aims to make India more compliant with commitments of World Trade Organisation (WTO) to o make it non-discriminatory and neutral with respect to domestic sales and exports. The main objectives of the scheme are:

• Focus more domestic market and acknowledge the relevance of exports in the overall growth strategy.
• Specific product areas should be identified and protected.
• Non tariff measures that make imports more expensive can be introduced.
• Burden of compliance needs to reduced.
• Promote job generation and employment.
• Promote domestic manufacturing by offering production incentives and encouraging capital investments.
• Attract core knowledge competency and cutting-edge technologies.
• Create economies of scale and ensure efficiencies.
• Construct district-level export hubs.
• Improve ease of doing business.
• Cut down logistics costs.

A report on the Financial Express has said that the central government is examining PLI proposals from about a dozen sectors, including leather and footwear, toys, cotton-based textiles, electrolysers, coalbed methane, coal gasification, bicycles, furniture, shipping containers, chemicals for paint and fertilisers.