Central Cabinet Approves Rs 2 Trillion Incentive To Promote Domestic Manufacturing In 10 Sectors

Production-linked incentives will be offered for sectors such as white goods manufacturing, pharmaceutical, specialized steel, auto, telecom, textile, food products, solar photovoltaic, and cell battery.

(File Photo/ Getty)

New Delhi: In order to boost domestic manufacturing in 10 different sectors, the Central Cabinet on Wednesday approved Rs 2 trillion production-linked incentives for different domestic manufacturing sectors. After the Cabinet meeting, Information and Broadcasting Minister Prakash Javadekar told the media that, production-linked incentives will be offered for sectors such as white goods manufacturing, pharmaceutical, specialized steel, auto, telecom, textile, food products, solar photovoltaic, and cell battery. The production-linked incentive scheme aims to boost manufacturing in the 10 designated sectors and make Indian manufacturers globally competitive, attract investment in the areas of core competency and cutting-edge technology; ensure efficiencies; create economies of scale; enhance exports and make India an integral part of the global supply chain, the government statement said. “The Prime Minister’s clarion call for an ‘AatmaNirbhar Bharat’ envisages policies for the promotion of an efficient, equitable, and resilient manufacturing sector in the country. Growth in production and exports of industrial goods will greatly expose the Indian industry to foreign competition and ideas, which will help in improving its capabilities to innovate further,” the statement said. “Promotion of the manufacturing sector and the creation of a conducive manufacturing ecosystem will not only enable integration with global supply chains but also establish backward linkages with the MSME sector in the country. It will lead to overall growth in the economy and create huge employment opportunities,” it added. The following sectors will be benefiting from the PLI scheme, 1) Advance Chemistry Cell (ACC) Battery 2) Electronic/Technology Products 3) Automobiles & Auto Components 4) Pharmaceuticals drugs 5) Telecom & Networking Products 6) Textile Products: MMF segment and technical textiles 7) Food Products 8) High-Efficiency Solar PV Modules 9) White Goods (ACs & LED) 10) Speciality Steel The domestic manufacturing sectors that are mentioned above will be added to the already notified PLI schemes in the following sectors: Mobile Manufacturing and Specified Electronic Components, Critical Key Starting materials/ Drug Intermediaries, and Active Pharmaceutical Ingredients, Manufacturing of Medical Devices.