New Delhi: India has made several successful efforts to encourage Make in India at different levels.
Prime Minister Narendra Modi has said this while addressing a webinar on Production Linked Incentives(PLI) scheme organized by Department of Industry and International Trade and NITI Aayog through video conference.
He stressed on the need to take a big leap, increase the speed and scale to boost manufacturing.
PM 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.
Prime Minister said the Government’s thinking is clear – Minimum Government, Maximum Governance and 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 emphasized. He emphasized 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.
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. He added that the energy sector will be modernized 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.
The Prime Minister highlighted that in this year’s budget, a provision of about 2 lakh crore rupees has been made for schemes related to the PLI scheme. An average of 5 Percent of production is given as incentive. This 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.
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 3 trillion rupees worth production in 4 years and domestic value addition is expected to rise from current 5-10 percent to 20-25 percent in 5 years. Similarly telecom equipment manufacturing will witness an increase of about 2.5 lakh crore rupees in 5 years. We should be in a position to export worth 2 lakh crore from this, said the Prime Minister.
PM 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 incentivize manufacturing of mobile phones and electronic components in India. Even during Pandemic, the sector manufactured goods worth Rs 35000 crore last year, saw a fresh investment of about Rs 1300 crore and created thousands of new jobs in this sector.
