Business

PLI plan will lead to output of $520 bn: PM

Prime Minister Narendra Modi on Friday said that the Production-Linked Incentive (PLI) scheme, introduced by the government for about 13 sectors, will lead to production worth $520 billion in the country over the next five years.

Mr. Modi added that the government was also working towards enhancing ease of doing business as well as reducing the compliance burden for the industry as he believed that government interference in everything created more problems rather than solutions.

The Prime Minister was speaking at a webinar on PLI scheme, organised bythe Department for Promotion of Industry and International Trade (DPIIT and NITI Aayog, attended by corporate leaders from various sectors.

“The government’s thinking is clear — minimum government, maximum governance and expects zero effect, zero defect,” Mr. Modi said, adding that the government is working at every level to promote the industry, including ease of doing business, reducing compliance burden, creating multi-modal infrastructure to reduce logistics costs and constructing district level export hubs.

“Therefore, self-regulation, self-attesting and self-certification are being emphasised. There is a need to make Indian companies and manufacturing being done in India, globally competitive. We have to attract cutting-edge technology and maximum investment in the sectors related to our core competency,” he said.

The Prime Minister said, earlier, industrial incentives were open-ended, input-based subsidies. Now, they have been made targeted and performance-based through a competitive process.

“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 said.

He added that the PLI scheme would have a major impact on the country’s MSMEs ecosystem by creating the anchor units in every sector that will need a new supplier base across the entire value chain. He asked the industry to leverage the PLI scheme and focus on creating best quality goods for the country and the world.

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Printable version | Apr 15, 2021 9:33:21 AM | https://www.thehindu.com/business/pli-plan-will-lead-to-output-of-520-bn-pm/article34000103.ece

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