PLI scheme will expand its scope in the 2023 budget

The ambitious (production-linked incentive program) PLI scheme has been a key factor in the expansion of the manufacturing sector, and the government may broaden the program's use in the Union Budget of 2023.

Given its significance for long-term growth and job creation, the manufacturing sector is likely to get significant support in the next Union Budget 2023. The successful Production-Linked Incentive (PLI) programme of the government is expected to be expanded to cover other industries with strong employment rates.

Toy, bicycle, leather, and footwear manufacturing are just a few businesses that might be included by the PLI plan in the 2019 budget on February 1, according to news agency PTI.

A total of 14 industries, including white goods, textiles, food items, high-efficiency solar PV modules, advanced chemical cells, and specialty steel, were included in the scheme's initial rollout, which cost Rs 1.97 lakh crore.
The programme is producing positive effects, according to the sources cited in the news agency's article. Its goals are to increase local manufacturing's competitiveness on the global market and to produce manufacturing champions.

They said that a plan to expand PLI program benefits to various industries, such as toys and leather, is close to completion and has a good chance of making the budget.

According to one of the sources cited, some savings from the expenditure stated the year before have been realized and may be applied to other areas.

Why is the PLI plan so crucial for India?

With the PLI programme, the government hopes to support domestic producers and help them become more competitive abroad. The government is of the opinion that increasing domestic production in all sectors might aid in luring investment in fields requiring core competencies and cutting-edge technology, boosting exports, and establishing India as a key player in the world supply chain.

As of September 2022, the PLI plan for large-scale electronics manufacturing has drawn investments of Rs 4,784 crore and produced a total of Rs 2,03,952 crore, including Rs 80,769 crore in exports.

It should be highlighted that the business sector has contributed significantly to the PLI initiative.

In a statement released on December 16, 2022, the commerce and industry ministry stated that 650 applications had already been granted under 13 programmes, and more than 100 MSMEs were among the PLI recipients in industries including food processing, medical devices, bulk medicines, and white goods.

The program's particular goals were to increase domestic manufacturing in important industries, lower import costs, make locally produced items more cost-competitive, and increase domestic capacity and exports.

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