NEW DELHI: After mobiles and primary & bulk drug manufacturing, the federal government is taking a look at incentive schemes for different sectors corresponding to lithium ion batteries and printed circuit boards (PCBs). Whereas the commerce and business ministry is […]
Whereas the commerce and business ministry is engaged on a plan to help the home manufacturing of a number of gadgets, sources mentioned the finance ministry will not be in favour of providing the performance-linked incentives (PLIs) to merchandise corresponding to air-conditioners, furnishings and segments of the textiles business that a number of authorities companies and business our bodies are demanding.
Tightening the circulate of funds, North Block has indicated that financial savings from the Merchandise Exports of India Scheme (MEIS), the place it has capped the outgo at Rs 9,000 crore throughout April-December, can be utilized for incentivising home manufacturing of products, that are presently being imported and widening the commerce deficit. The outgo on MEIS was estimated at Rs 43,000 crore final 12 months.
The commerce and business ministry has already put in place a blueprint for over a dozen business teams, whereas beginning work with business captains on including one other eight sectors, together with TV units, CCTV gear, set-top bins, electrical car elements, medical gadgets, sports activities & fitness center items and lithium ion batteries.
“The thought is to concentrate on items which are excessive know-how and require worth addition, as an alternative of issues like furnishings which is run of the mill,” mentioned a senior finance ministry officer. By the way, the finance ministry had opposed the performance-linked incentive scheme for cell phones, questioning the necessity for an expenditure of round Rs 40,000 crore. It lastly went by way of after the ministry of electronics and IT and NITI Aayog defined that the sops would create jobs and generate income in future.
The proposals, put collectively, require massive funding. As an illustration, to make India a big base of AC manufacturing, an funding of round Rs 1 lakh crore is required.
One other officer mentioned that the federal government recognises that there’s a want to supply help to encourage home manufacturing, particularly when imports from nations corresponding to China had been being discouraged. However the concept is to prioritise expenditure.
Among the initiatives, corresponding to organising of a footwear park, are being pursued by the personal sector.