Global firms raised production in India, govt attract investors with PLI scheme
By Sanjay Kumar
- The government launched attractive initiatives such as the PLI scheme for technology sectors.
- PLI for other sectors to raise their domestic manufacturing of wearable electronic devices.
- To boost manufacturing’s share in the country’s GDP to 25% in the coming years from the current 18 per cent.
Government attract investors with the PLI scheme
The chairman of Apex Avalon Consultancy Mr Girija Pande said, “the Govt. of India launched an attractive initiative like the Production-Linked Incentive (PLI) scheme for smartphones industry and other technology-driven sectors, in result, the leading global firm are increasing their production at their newly set up units in the country.
To support country manufacturing firms and the Make in India Mission, the government is also planning PLI for other sectors to raise their domestic manufacturing of wearable electronic devices such as smartwatches.
Girija Pande added, “Such incentives will play an important role to boost manufacturing’s share in the country GDP to 25% in the coming years from the current 18 per cent”.
The yearly Production-Linked Incentive (PLI) scheme will help India export electronic/IT goods worth Rs 2.45 trillion.
Global firms raised production in India
Girija Pande said, “Reflecting confidence in the Indian market, Apple ramped up manufacturing its mobiles in India via the local units of Taiwan’s Foxconn Technology Group (multinational electronic industry) and Wistron Group (Design, Manufacture, or services provider), the 3 Apple suppliers are said to be planning investments of roughly USD 900 million over 5 years.”.
The development of Apple’s manufacturing units and Tesla Inc’s appearance is shaping up this year to be the year that heralds the arrival of the country as a manufacturing hub for the world.
A major ride services player Ola has build-up its new factory in Tamil Nadu, it is the world’s largest two-wheeler facility about 500-acre size. This facility will churn out 10 million electric & two-wheeler scooters once it reaches full capacity by 2022.
Production-Linked Incentive (PLI) scheme
The scheme offers lower charges and provides higher returns than comparable policies of life insurers. PLI scheme was Started in 1884 managed by the Department of Posts under the Government of India.
The Production-Linked Incentive (PLI) scheme is attracting large investment boost domestic manufacturing, especially in the Technical textiles and MMF segment. Recently prime minister Narendra Modi said, “Production-Linked Incentive (PLI) scheme will raise the country’s production by $520 billion over the 5 years”.
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