India may offer production-linked incentives to automobile manufacturers, solar panel makers, and specialty steel to consumer appliance companies.
India is planning a Rs 1.68 lakh crore package ($23 billion) to incentivise global manufacturers to set shop in the country.The government might offer production-linked incentives (PLIs) to automobile manufacturers, solar panel makers, and specialty steel to consumer appliance companies, according to a report by Bloomberg.
The proposal could also include schemes for textile units, food processing plants and specialized pharmaceutical product makers, the report added.
Moneycontrol could not independently verify the story.
The government is also planning to introduce a phased manufacturing program for sectors such as furniture, plastics, toys and low-value consumer durables, the report added.
The proposals come amid the government's push for self-reliance of the Indian economy by increasing local manufacturing.
The plans will soon be placed before the Union Cabinet for approval after the details are finalised, the report said.
"The move will definitely have a positive impact on manufacturing, especially for so-called booming sectors such as solar and electronics," Madan Sabnavis, chief economist at Care Ratings told Bloomberg.
"It is a good way of attracting investments and has potential to make a difference in these sectors," Sabnavis added.
22 companies have filed their application under the PLI Scheme for large scale electronics manufacturing, the Ministry of Electronics & IT said on August 1.