An engineering sector's body of MSMEs has demanded from the government to announce a production-linked incentive scheme (PLI) for the industry to boost domestic manufacturing, exports and job creation.
In a communication to the commerce ministry, Ludhiana-based Hand Tools Association said that the sector provides employment to 7.25 workers for every ₹1 crore sale per year on an average as compared to the job creation ratio of 4.75 in bicycle industry and 5-6 in textiles. Exports of hand tools industry is about ₹3,200 crore annually.
The association’s President S C Ralhan said that the Indian hand tools industry has a long way to go in order to realise its full potential and it holds huge possibilities. “The main challenge is rapid modernisation,” he added.
"The total hand tools industry globally is ₹30,000 crore and there is aggregate potential for modernisation and growth. Thus we request that the government should prioritise the industry and also bring it under the PLI scheme," Ralhan added.
PLI scheme is there for 14 sectors, including PV modules, white goods, electronic items, pharma and auto components.
It aims to create national manufacturing champions and generate employment opportunities for the country's youth. The objective is to make domestic manufacturing globally competitive and to create global champions in manufacturing.
The incentives have been specifically designed to boost domestic manufacturing in sunrise and strategic sectors, curb cheaper imports and reduce import bills, improve cost competitiveness of domestically manufactured goods, and enhance domestic capacity and exports.