With India's economy in a tailspin, Cabinet approves PLI plan for 10 key sectors

New Delhi: Aiming to enhance domestic manufacturing and job creation, mindful of the economy being in a tailspin, the Union Cabinet Wednesday approved a Productivity Linked Incentive (PLI) scheme for 10 key sectors, with an outlay of Rs 1,45,980 crores, which is part of the government's “Atma Nirbhar Bharat” pitch.

Under the five-year scheme that will continue till 2025, extra domestic production will be encouraged in sectors like advanced chemistry cell (ACC) batteries, white goods, speciality steel, pharmaceuticals, auto components, food products, telecom, textiles and electronic products as well as solar photo voltaic modules.

This newspaper exclusively reported on September 8 how the Centre, faced with rising unemployment and a sluggish economy, aims to push the “Atma Nirbhar Bharat” agenda by unveiling a national programme for manufacturing ACC batteries domestically. These are widely used in e-vehicles -- whose promotion is a pet project of the NDA government.

ACC battery production is among the 10 key sectors identified by the Centre for inclusion in the PLI scheme. The Centre feels the scheme will enhance exports and make domestic manufacturers globally competitive.

Finance minister Nirmala Sitharaman, elaborating on the scheme to the media after the Cabinet meeting, said there would not be any cap on the number of companies participating. However, any new sector that has to be included in the scheme will need fresh Cabinet approval.

Official sources said the Centre included these 10 sectors as these are areas where India as a significant marketshare in production for global markets, and after inclusion not only could India emerge as a major player in the manufacture of these products, but there would be big jump in the creation of job.