The Prime Minister Narendra Modi on Friday said that production linked incentive (PLI) scheme would make a major impact to the country’s micro small and medium enterprises (MSMEs) ecosystem by creating the anchor units in every sector that will need a new supplier base across the entire value chain.
He urged the industry to join and take advantage of the PLI scheme and added that the focus of the industry should be on creating ‘Best Quality Goods’ for the country and the world. He also urged the industry to innovate according to the needs of the fast changing world, increase our participation in R&D, upgrading the manpower skills and use of new technology.
“We have the talent everywhere in handicrafts...from the MSMEs and we can make them export oriented,” he said while addressing on PLIs scheme organised by the Department of Industry and International Trade and Niti Aayog through a webinar.
The Prime Minister highlighted that in this year’s budget, a provision of about ₹2 lakh crore has been made for schemes related to the PLI scheme and an average of five per cent 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.
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 worth production in four years and domestic value addition is expected to rise from current 5-10 per cent to 20-25 per cent in five years.
Similarly telecom equipment manufacturing will witness an increase of about ₹2.5 lakh crore in five years. “We should be in a position to export worth ₹2 lakh crore from this,” he said.
In the Pharma sector, Modi said he expects more than ₹15,000 crore investment in next five-six years under PLI leading to ₹3 lakh crore in pharma sale and export increase worth ₹2 lakh crore.
The Prime Minister asserted that the way India is serving humanity today, India has become a big brand all over the world. India’s credibility and India’s identity is constantly reaching new heights.
“The brand of India is continuously reaching new heights. The trust has increased in our medicines, our medical professionals and our medical equipment across the world,” Modi said. And, to honor this trust, he 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 incentivise manufacturing of mobile phones and electronic components in India. Even during the pandemic, the sector manufactured goods worth ₹35,000 crore last year, saw a fresh investment of about ₹1,300 crore and created thousands of new jobs in this sector.
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 modernised 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.