Envisioned to provide a major impetus to the Indian manufacturers and exports, the Production-Linked Incentive (PLI) scheme with an outlay of Rs 2 lakh crore will help the Indian companies take advantage of the global supply chain realignment, according to NITI Aayog CEO Amitabh Kant.
Speaking at the FICCI AGM, Kant said the PLI scheme will be a gamechanger for the sectors.
"We want India to become global champions in manufacturing in sectors where we have announced the PLI scheme. It is going to be a gamechanger for these sectors. Companies like Wistron and Foxconn are coming into India and Samsung is also expanding in a big way. We have also supported Indian manufacturers. This is an opportunity for Indian companies to take advantage of the changes taking place in the global supply chain. We should be able to produce cutting-edge solutions and products that will ensure our integration into the global value chains," he said.
Kant explained that in India, the tendency has often been to focus on sunset industries and it then becomes difficult to penetrate into emerging areas of growth.
"Around 73 percent of our exports is in areas where the world market is at just 30 percent. Even if we try very hard in areas like food processing and textiles, we will not be able to become a global exporter. There are sunrise areas of growth where India must get in. In the PLI scheme for electronic technology products, we have focused on new areas of growth like IoT devices, servers and in the PLI scheme for advanced cell chemistry battery manufacturing is actually a massive opportunity for us to look at faster adoption of electric vehicles and renewable energy solutions. Batteries will be required for both mobility and grid solutions and it should bring in major international and domestic players to establish competitive and efficient manufacturing landscape in India. The PLI for telecom sector should also attract large investments from global companies as well as domestic companies to ramp up our capabilities of domestic manufacturing," he said.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
