Synopsis
The government expects that this scheme will result in an incremental production of Rs 2 lakh crore over the next five years and give India a sizeable foothold in the Rs 100 billion telecom and networking products exports market.
The guidelines to the scheme should also create enough room for Research and Development (R&D) to be considered within the purview of manufacturing.
Winston Churchill once said: “Continuous effort – not strength or intelligence is the key to unlocking our potential.” The government seems to have drawn lessons from this phrase.
With a continued thrust on self-reliance coupled with slew of game changing financial and digital reforms, the long-awaited Indian manufacturing revolution seems to have finally taken off. Add to that, the Production Linked Incentive (PLI) Scheme introduced last year have furthered the momentum, drawing encouraging response from global and domestic manufacturers alike. The electronics manufacturing space, for example, has seen significant traction, offering the perfect prelude to greater capital inflow for the exchequer. The cumulative scale of incentive offered is over Rs 9 Trillion, with a potential to catalyze an exponential increase in the country’s manufacturing output in the times to come. The calibrated approach towards shortlisting the sectors will drive greater use of cutting-edge technology, faster integration with global value chains and large-scale job-creation.