Two government officials announced on Nov 9 that India is considering loosening and broadening certain regulations in five sectors to enhance the utilization of its $24 billion industrial incentives, which are intended to bolster local manufacturing. The PLI scheme, which was launched in 2020 with a budget of 1.97 trillion rupees, includes 14 sectors, such as electronic products and drones. However, it has only shown success in a few sectors, leading to calls for a review.
Nearly a third of the PLI scheme will undergo changes as plans are being made in the textiles, pharmaceuticals, drones, solar, and food processing industries. According to officials, the government intends to expand the range of products in the textile sector to include man-made fiber. Additionally, firms will be given an extra year to fulfill the manufacturing targets needed to qualify for incentives under the scheme.
Additionally, the scheme will be prolonged for the pharmaceuticals sector for another year. Moreover, the financial allocation for incentive payouts for drone production will be increased to 3.3 billion rupees from the current 1.2 billion rupees, as stated by officials.
Indian officials have announced plans to expand the government scheme to include millet-based products in the food processing sector and to incorporate the production of ingots and wafers in the scheme for the solar module sector. The Indian trade ministry, responsible for implementing the scheme, is in discussions with other federal departments regarding the changes, as per their statement.
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