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There’s a lot of talk about the new Production-Linked Incentive (PLI) schemes that might be introduced in the Union Budget 2024. These new schemes could be for categories like toys, footwear, textiles, and even millet-based foods. Not sure what PLI schemes are? No worries, we'll explain it simply.
PLI schemes are designed by the government to encourage specific industries to grow. By giving financial incentives, the government hopes these industries will produce more and create more jobs. It's like a bonus system where companies get extra money if they meet certain production targets. This way, companies are motivated to produce more, which helps the industry grow and creates more job opportunities.
Industry experts, like those from the PHD Chamber of Commerce and the Confederation of Indian Industry, believe new PLI schemes are especially needed in sectors that require a lot of labour. These are industries where many people can find jobs, such as textiles, footwear, and toys. The idea is that by supporting these sectors, we can create more jobs and boost the economy.
Right now, ₹1.97 lakh crore has been set aside for PLI schemes, and around ₹41,000 crore of this is still unspent. This leftover money could be used to support new sectors in the budget. The government is looking at how to use these funds most effectively to boost production in new areas.
Since PLI schemes started in 2021, they have brought in investments of over ₹1.03 lakh crore. This has led to production and sales worth ₹8.61 lakh crore and created over 6.78 lakh jobs. However, some sectors like leather, garments, handicrafts, and jewellery haven’t seen as much benefit yet. These sectors have a lot of potential for job creation and should be considered for new PLI schemes.
In the interim budget, the government had increased the allocation for PLI schemes to ₹6,200 crore for the next year, which is a 33% increase from last year's budget. This shows their commitment to supporting manufacturing and supply chains in 14 key sectors, including mobile phones, pharmaceuticals, automobiles, and electronics.
Potential New Sectors
In Budget 2024, there’s a possibility that the government might introduce PLI schemes for new categories. Let’s take a closer look at these potential new sectors:
Expanding PLI schemes to new sectors can have several benefits:
The PLI scheme has already driven exports beyond ₹3.20 lakh crore, with major contributions from electronics manufacturing, pharmaceuticals, food processing, and telecom products. The scheme's long-term goal is to boost production, employment, and overall economic growth over the next five years. Continued support and expansion of the scheme can significantly enhance India's export capabilities and economic resilience.
As we await the Budget 2024, keep an eye out for new PLI schemes. They could bring big changes to various industries, create jobs, and boost the economy. The government’s increased allocation for PLI schemes shows their commitment to supporting manufacturing and supply chains. New sectors like toys, footwear, textiles, and millet-based foods could see significant growth with the right incentives.
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