While incentives worth Rs 6,238 crore would be provided over five years for the manufacturing of white goods in India, the outlay for solar PV modules is Rs 4,500 crore
The Union Cabinet on Wednesday approved production-linked incentive (PLI) schemes for white goods (air conditioners and LED lights) and high-efficiency solar photovoltaic (PV) modules with a total budgetary outlay of Rs 10,738 crore in a bid to boost domestic manufacturing.
While incentives worth Rs 6,238 crore would be provided over five years for the manufacturing of white goods in India, the outlay for solar PV modules is Rs 4,500 crore.
“India’s growth story will be led by its flagship PLI scheme, boosting the capability of local industry and job growth,” Commerce and Industry Minister Piyush Goyal said. “This means that minimum production in India as a result of PLI schemes is expected to be over $500 billion over the next five years.”
Last year, Finance Minister Nirmala Sitharaman had announced an outlay of Rs 1.97 trillion for PLI schemes for 13 key sectors, including technology, textile, automobile, and pharmaceuticals. Out of these, three schemes have already been notified, while six others have been approved by the Cabinet.
The development comes at a time when India is trying to diversify its supply chains amid tensions with China and the government’s persistent efforts to become self-reliant through various initiatives under Aatmanirbhar Bharat.
“The schemes have been specifically designed to boost domestic manufacturing in the sunrise and strategic sectors, curb cheaper imports and reduce import bills, improve the cost competitiveness of domestically manufactured goods, and enhance domestic capacity and exports,” an official statement said.
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