PLI scheme to boost manufacturing in India by $520 bn in next 5 years: PM Modi
New Delhi: Prime Minister Narendra Modi has said that the government's Production Linked Incentives (PLI) schemes will lead to production worth $520 billion in India in the next five years. While highlighting that in this year's Budget, a provision of about Rs 2 lakh crore has been made for schemes related to the PLI scheme, the Prime Minister said that an average of 5 percent of production is given as incentive, which 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.
Addressing a webinar on PLI scheme organised by the Department for Promotion of Industry and International Trade (DPIIT) and NITI Aayog, he Prime Minister said that over the past six-seven years, several successful efforts have been made to encourage Make in India at different levels. 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.
'Indian companies and manufacturing should be globally competitive'
The Prime Minister said the government's thinking is clear — Minimum Government, Maximum Governance — and it expects Zero Effect, Zero Defect. He said the government is working at every level to promote the industry like Ease of Doing Business, reducing the compliance burden, creating multimodal infrastructure to reduce logistics costs, constructing district level export hubs. He said the government believes that government interference in everything creates more problems rather than solutions. Therefore, self-regulation, self-attesting, self-certification are being emphasised. He emphasised the need to make Indian companies and manufacturing being done in India, globally competitive and also, to create global recognition for our production cost, products, quality and efficiency. "We have to attract cutting edge technology and maximum investment in the sectors related to our core competency," he said.
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. The Prime Minister said 13 sectors have been brought under Production Linked Incentives for the first time. "PLI benefits the entire ecosystem associated with the sector. With PLI in auto and pharma, there will be very less foreign dependence related to auto parts, medical equipment and raw materials of medicines," said the statement. He added that the energy sector will be modernised in the country with the help of advanced cell batteries, solar PV modules and specialty steel. Similarly, the PLI for the textile and food processing sector will benefit the entire agriculture sector.
'PLI related announcements are being implemented with speed'
The Prime Minister said that PLI related announcements are being implemented with speed. 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 Rs 3 trillion worth production in four years and domestic value addition is expected to rise from current 5-10 percent to 20-25 percent in five years. Similarly, telecom equipment manufacturing will witness an increase of about Rs 2.5 lakh crore in five years. "We should be in a position to export worth Rs 2 lakh crore from this," said the Prime Minister.
In the pharma sector, the Prime Minister expected more than Rs 15 thousand crore investment in next 5-6 years under PLI leading to Rs 3 lakh crore in pharma sale and export increase worth Rs 2 lakh crore.
The Prime Minister asserted that the way India is serving humanity today and has become a big brand all over the world. India's credibility and India's identity is constantly reaching new heights, he said. He said trust has increased in our medicines, our medical professionals and our medical equipments across the world. To honour this trust, he urged the pharma sector to work on chalking out long-term strategy to take advantage of this. He said the PLI scheme was launched last year to incentivise manufacturing of mobile phones and electronic components in India. Even during the pandemic, the sector manufactured goods worth Rs 35,000 crore last year, saw a fresh investment of about Rs 1,300 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.
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