"The committee recommends that the scope of the PLI scheme be expanded to include other sectors with high employment potential, such as the chemicals sector and labour-intensive industries like leather, apparel, toys, jewellery, and handicrafts,” the panel report stated.
The Parliamentary Standing Committee on Commerce on Friday gave its recommendation for the government to extend the tenure and scope of the ongoing Production Linked Incentive (PLI) scheme to more sectors and improve its effectiveness by reducing “administrative delays” and “compliance burdens”.
“The committee is of the view that the PLI’s effectiveness could be further enhanced by extending its duration, reducing administrative delays, and easing compliance burdens. The committee recommends that the scope of the PLI scheme be expanded to include other sectors with high employment potential, such as the chemicals sector and labour-intensive industries like leather, apparel, toys, jewellery, and handicrafts,” the panel report stated.
The committee highlighted that capacity development in value-added garments within the man-made fibre (MMF) segment requires government attention.
“The government must engage with Export Promotion Councils and other stakeholders to address demands for changes in the PLI scheme, such as covering additional high-potential MMF apparel products and reducing the value addition criteria,” the report said.
Regarding the pharmaceutical sector, the panel noted that India’s pharmaceutical industry is a significant contributor to foreign trade and has consistently played a crucial role in export growth.
“However, obstacles hindering the expansion of pharmaceutical exports need prompt attention. The committee, therefore, suggests that suitable provisions be made in the PLI scheme, in consultation with stakeholders, to safeguard manufacturers against price fluctuations in international markets,” the report stated.
The panel also noted that PLI schemes for all 14 sectors have been notified and are at various stages of implementation. As of December 2023, actual investment of Rs 1.07 lakh crore had been realised, leading to production or sales worth Rs 8.70 lakh crore and the creation of around 7 lakh direct and indirect jobs. Exports have exceeded Rs 3.40 lakh crore, with significant contributions from electronics, pharmaceuticals, and food processing, the report added.
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Reuters reported on Friday that the government has decided to let the PLI scheme lapse. According to two officials cited in the report, the scheme will not be expanded beyond the 14 pilot sectors, and production deadlines will not be extended despite requests from some participating firms.
However, the report stated that the end of the PLI programme does not indicate an abandonment of the government’s manufacturing ambitions, since alternative strategies are being planned.
Ravi Dutta Mishra is a Principal Correspondent with The Indian Express, specializing in economic policy and financial regulations. With over five years of experience in business journalism, he provides critical coverage of the frameworks that govern India's commercial landscape.
Expertise & Focus Areas: Mishra’s reporting concentrates on the intersection of government policy and market operations. His core beats include:
Trade & Commerce: Analysis of India's import-export trends, trade agreements, and commercial policies.
Banking & Finance: Covering regulatory changes and policy decisions affecting the banking sector.
Professional Experience: Prior to joining The Indian Express, Mishra built a robust portfolio working with some of India's leading financial news organizations. His background includes tenures at:
Mint
CNBC-TV18
This diverse experience across both print and broadcast media has equipped him with a holistic understanding of financial storytelling and news cycles.
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