According to an official statement released on Thursday, the result of the Centre’s recently announced slew of production-linked incentive schemes is expected to be over $504 billion in production over the next five years.
In addition, the Commerce and Industry Ministry stated that the incentives to be provided under the PLI scheme will “enhance” employment by over one crore during the above-mentioned period.
“The schemes have been specifically designed to attract investments in sectors of core competency and cutting edge technology, ensure efficiency and bring economies of size and scale in the manufacturing sector and make Indian manufacturers globally competitive so that they can integrate with global value chains,” it said.
In the Union Budget for FY22, an estimated outlay of Rs 1.97 lakh crore was announced in 13 key manufacturing sectors: mobile manufacturing and specified electronic components, critical key starting materials/drug intermediaries and active pharmaceutical ingredients, manufacturing of medical devices, automobiles, and auto components, pharmaceutical drugs, speciality steel, telecom, and networking products, electronic/technology products, white goods (ACs and LEDs), food products, textile products – MMF segment and technical textiles, high-efficiency solar PV modules, and advanced chemistry cell (ACC) Battery.
The statement also mentioned how the Centre’s actions aided the Indian economy, such as lowering corporate tax rates, easing NBFC and bank liquidity problems, improving ease of doing business, FDI policy reforms, reduced compliance burden, policy measures to boost domestic manufacturing through public procurement orders, phased manufacturing program (PMP), and PLI schemes.
According to provisional data, India received the largest ever annual FDI inflow of $81.97 billion in FY21, according to the announcement.
“Top five countries from where FDI equity inflows were received during April 2014 and August 2021 are Singapore, Mauritius, the US, the Netherlands, and Japan. The computer software and hardware sector attracted the largest share of FDI inflows at 19 percent, followed by service, trading, and telecommunications and construction during the same period in the last more than seven years,” it added.