Pli: The scheme was announced in 2021 for 14 sectors, including telecommunication, white goods, textiles, manufacturing of medical devices, automobiles, speciality steel, food products, high-efficiency solar PV modules, advanced chemistry cell battery, drones and pharma with an outlay of Rs 1.97 lakh crore.
The government is in the process of modifying the production-linked incentive (PLI) schemes for textiles, food processing, and pharmaceuticals. A cabinet note has been finalized to make these sectors more attractive for companies participating in the PLI program. The move aims to enhance investment in sectors beyond electronics, pharma, food processing, and telecom, which have been the primary beneficiaries of the PLI schemes so far. A ₹1.97 lakh crore PLI scheme covering 14 sectors, including textiles and pharmaceuticals, was announced in 2021.
Major new announcements are unlikely in this interim budget, but the government may provide updates on last year s initiatives and announce incentives for semiconductor production.
Interim Budget: Experts suggest that the government should introduce employment-linked incentives in the upcoming interim budget to promote job creation and formalization. They recommend providing tax breaks or subsidies to small and medium-sized enterprises (SMEs) for hiring workers from marginalized communities to address social inequality.
Interim budget: India s Production-Linked Incentive (PLI) scheme, launched in 2020, aims to boost manufacturing, decrease imports, and increase exports. While critics, including former RBI governor Raghuram Rajan, question its effectiveness, the Commerce and Industry Ministry reports over Rs 95,000 crore invested and 746 approved applications till November 2023. The proposed industrial policy seeks to enhance competitiveness and identify areas of cost advantage over China.