The Prime Minister said the government was working to reduce the compliance burden, further ease of doing business and cut logistics costs for the industry.
Prime Minister Narendra Modi said on Friday that the Production Linked Incentive (PLI) scheme, which aims to boost domestic manufacturing and exports, is expected to increase the country’s production by $ 520 billion over the next five years.
Addressing a webinar on the PLI scheme organized through a video conference organized by the Department of Industry and International Trade (DPIIT) and NITI Aayog, Mr. Modi said that the government is continuously improving to promote domestic manufacturing.
In this year’s budget, around ₹ 2 lakh crore was laid out for the PLI scheme for the next five years and “there is an expectation that this plan will result in a production increase of about $ 520 billion over the next five years”.
He said that there is also an expectation that the existing workforce in the regions, which will take advantage of the PLI scheme, will be doubled and employment generation will also increase.
The Prime Minister said the government was working to reduce the compliance burden, further ease of doing business and cut logistics costs for the industry.
He said, “On average 5% is given as a production incentive. This means that PLI plans will generate USD 520 billion in India in the next five years.”
Shri Modi said that in the last 6-7 years, many successful efforts have been made to encourage ‘Make in India’ at various levels.
He emphasized the need to take a big leap, as well as increase the speed and scale to boost manufacturing as it would increase employment generation in the country.
The Prime Minister said that the government is working to promote industry at every level, ease of trade, reduce compliance burden, create multi-modal infrastructure to reduce logistics costs, and build district-level export centers .
“Our effort is to reduce the compliance burden (to the industry) by over 6,000,” he said.
He said that the government believes that its interference in everything creates more problems than solutions and “hence, emphasis is being placed on self-regulation, self-verification, self-authentication”.
“We have to attract state-of-the-art technology and maximum investment in areas related to our core competency,” he said.
Underlining the difference between earlier schemes and the current government, the Prime Minister said that earlier industrial incentives used to be open-ended based input subsidies, now they have been targeted and demonstrated through a competitive process. Regarding the PLI benefit, he said that 13 areas have been brought under the purview of the scheme and this will benefit the entire ecosystem associated with these areas.
“With PLI in auto and pharma, there will be very little foreign dependency related to raw materials for auto parts, medical equipment and medicines. The energy sector in the country will be modernized with the help of advanced cell batteries, solar PV modules and specialty. Steel, “He added that the entire agriculture sector would benefit by adding PLI for the textile and food processing sector.”
Shri Modi said that the recently approved PLI scheme in manufacturing IT hardware and telecommunication equipment will lead to a tremendous increase in production and domestic value addition.
He said that IT hardware is expected to produce Rs 3 lakh crore in four years and in 5 years the domestic price increase is expected to increase from the present 5-10 percent to 20-25 percent. There was an increase of about 2.5 lakh crore rupees in five years.
The Prime Minister said, “We should be in a position to export 2 lakh crore rupees from it.”
In the pharma sector, he said, investment of over Rs 15,000 crore is expected in the next 5-6 years under PLI, which will lead to an increase of Rs 3 lakh crore in pharma sales and Rs 2 lakh crore export growth.
In addition, he said that confidence in Indian medicines, medical professionals and devices has increased worldwide and to honor this trust, the pharma sector must work on devising a long-term strategy to leverage it.
Even during the epidemic, there was a fresh investment of around P1,300 crore in the field of mobile phones and electronic devices and thousands of new jobs were created.
The Prime Minister also said that the United Nations has declared 2023 to be an international year and more than 70 countries came to support India’s proposal and unanimously accepted it in the United Nations General Assembly.
“This is also a big opportunity for our farmers,” he said, urging the industry to launch a worldwide campaign in 2023 on the nutritional potential of millet or coarse grains to save people from getting sick.
With this announcement, the demand for millet in the domestic market and abroad will increase rapidly and this will greatly benefit Indian farmers.
He also urged the agriculture and food processing sector to take full advantage of this opportunity.
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