Production Linked Incentive (PLI) worth Rs 6,238 crore for air conditioners
and LED lights announced in the Union cabinet recently would certainly give a
big boost to local manufacturing. The various PLI schemes are being seen as the
mega policy plan of the government to make India a global manufacturing hub,
said Engineering Export Promotion Council Of India Chairman Mr Mahesh Desai.
PLI schemes one of
the major pull factors for MNCs
Commenting on the Union cabinet decision in this regard Mr Desai noted that
the PLI schemes were also being considered one of the major pull factors for
MNCs looking to diversify their supply chains.
This will not only bring fresh investments into the country but also offer
opportunities for local firms to enter into technical tie-up and form joint
ventures," he said.
The government has
so far cleared nine PLI schemes for different sectors.
The government has so far cleared nine PLI schemes for different sectors.
Both local and foreign players have shown keen interest in the scheme. Overall,
an outlay of Rs 1.97 lakh crore has been lined up for 13 key sectors. All the
schemes together are projected to boost India's output by over US$ 500 billion
in the next five years.
The additional manufacturing capacity coming under the PLI scheme would
have a huge multiplier effect and help build a robust supply chain network
linked with global giants. It will positively impact the SME sector and spur
growth and employment, said Mr Desai applauding the policy action.