Moreover, the sector's Gross Value Added (GVA) at current prices was estimated at US$ 397.14 billion in FY2020 with 0.3% Y-o-Y growth.In November 2020, the Indian government publicized the "Production Linked Incentive Scheme", worth Rs.
The incentive rate will depend on each sector's 'disadvantage' in domestic manufacturing and vary from sector to sector.The Union Cabinet, led by the honorable Prime Minister, Shri Narendra Modi, has revealed the Production Linked Incentive (PLI) Scheme in the following ten critical sectors for Enhancing India's Manufacturing Capabilities and Enhancing Exports under the tagline of "Atmanirbhar Bharat.
" Read More;- https://www.pukkapartners.com/insight/production-linked-incentive-scheme-major-boost-to-local PrioritySectorsImplementing Ministry/DepartmentApproved financial outlay over five years (INR Crore)1Advance Chemistry Cell (ACC) BatteryNITI Aayog and Department of Heavy Industries18,100 (US$ 2,400 million)2Electronic/Technology ProductsMinistry of Electronics and Information Technology5,000 (US$ 674.9 million)3Automobiles & Auto ComponentsDepartment of Heavy Industries57,042 (US$ 7,700 million)4Pharmaceuticals drugsDepartment of Pharmaceuticals15,000 (US$ 2,020 million)5Telecom & Networking ProductsDepartment of Telecom12,195 (US$ 1,600 million)6Textile Products: MMF segment and technical textilesMinistry of Textiles10,683 (US$ 1,400 million)7Food ProductsMinistry of Food Processing Industries10,900 (US$ 1,500 million)8High-Efficiency Solar PV ModulesMinistry of New and Renewable Energy4,500 (US$ 607.5 million)9White Goods (LED & ACs)Department for Promotion of Industry and Internal Trade6,238 (US$ 842.09 million)10Specialty SteelMinistry of Steel6,322 (US$ 853.4 million) Total145,980 (US$ 19,700 million) The above will be in addition to the already notified Production Linked Incentive Scheme in the following sectors: SectorsImplementing Ministry/DepartmentFinancial outlays (US$ million)1Mobile Manufacturing and Specified Electronic ComponentsMEITY 5,6872Critical Key Starting materials/Drug Intermediaries and Active Pharmaceutical IngredientsDepartment of Pharmaceuticals  9633Manufacturing of Medical Devices 475Total7,126 The clarion call for an 'AatmaNirbhar Bharat' envisions policies for promoting an equitable, efficient, and resilient manufacturing sector locally.
The rise in production and exports of industrial goods will broadly enhance the Indian industry's position in the global market.
The manufacturing sector's promotion is creating a conductive manufacturing ecosystem, which will enable integration with global supply chains and establish backward integration with the MSME sector in India.
It will also lead to overall growth in the economy and create substantial employment opportunities in the country.Considering the current schemes, the Indian government must enlighten and provide incentive schemes for the service industry.