SME Digital World

Tag: PLI

Incentives Worth Rs 9,721 Crore Claimed Under PLI Scheme for Nine Sectors: Piyush Goyal

Incentives Worth Rs 9,721 Crore Claimed Under PLI Scheme for Nine Sectors: Piyush Goyal

Commerce and Industry Minister Piyush Goyal informed the Lok Sabha on Tuesday that incentives amounting to Rs 9,721 crore have been claimed under the Production Linked Incentive (PLI) scheme for nine sectors, including electronics manufacturing and pharmaceuticals. Actual investments totaling Rs 1.23 lakh crore have been realized by March 2024, resulting in incremental production or sales of over Rs 10.31 lakh crore and the creation of approximately 8 lakh jobs.
In a written reply, Goyal detailed that the incentives were claimed for sectors such as large-scale electronics manufacturing, IT hardware, bulk drugs, medical devices, pharmaceuticals, telecom and networking products, food processing, white goods, and drones and drone components.
The PLI schemes aim to attract both domestic and foreign investments in key sectors and advanced technologies, ensure efficiency, and bring economies of size and scale to the manufacturing sector, making Indian companies globally competitive. Goyal noted that there is increasing foreign investment in several PLI sectors, highlighting Apple’s shift of its suppliers, including Foxconn, Wistron, and Pegatron, to India.
He added that most projects are in the implementation stage and will be filing incentive claims in due course. To further enhance the performance and sentiment of applicants, the government plans to settle PLI claims quarterly, which is expected to improve cash flow, accelerate the disbursement of incentives, and enhance fund utilization efficiency.
Additionally, Minister of State for Commerce and Industry Jitin Prasada informed the Parliament that India has granted Geographical Indications (GI) tags to 643 products as of July 24 this year. A GI tag, valid for 10 years and renewable thereafter, prevents any person or company from selling a similar item under the registered name. This tag assures quality and distinctiveness attributable to the product’s place of origin.
Prasada also mentioned that the Indian Patent Office granted 1,03,057 patents in the 2023-24 period.

July 31, 2024
Govt to Extend Easy Visa Rules to All PLI Sector Companies: DPIIT Secretary

Govt to Extend Easy Visa Rules to All PLI Sector Companies: DPIIT Secretary

The Production-Linked Incentive (PLI) scheme covers 14 sectors, including mobile phones, drones, white goods, telecommunications, textiles, automobiles, specialty steel, and pharmaceutical drugs. The government is working towards streamlining the application process for Indian business visas for companies that have set up manufacturing units in these sectors but are not direct beneficiaries of the PLI scheme.
“We have already streamlined the process for PLI beneficiaries. We’re now trying to extend this streamlined process to non-PLI beneficiaries operating in those same strategic sectors. We are currently drawing up a similar streamlined process for these non-PLI beneficiaries,” said Rajesh Kumar Singh, Secretary of the Department for Promotion of Industry and Internal Trade (DPIIT), which operates under the Ministry of Commerce and Industry, on Thursday.
While a final decision has yet to be made, the government is moving in this direction. “Visa-related matters fall under the purview of the Ministry of External Affairs and the Ministry of Home Affairs,” Singh added.
Earlier this week, Commerce and Industry Minister Piyush Goyal told Business Standard that the government is expediting visa-related issues to bring technicians to India from China and other countries as needed to ensure the smooth implementation of the PLI scheme.
The industry has sought government intervention to resolve visa-processing delays affecting Chinese vendors involved in manufacturing projects. Companies have faced productivity issues due to visa hurdles in areas ranging from component manufacturing to the installation or repair of machinery, especially under the PLI scheme.
Several ministries and government departments have been addressing outstanding visa-related issues for experts and technicians from China with the Ministry of External Affairs. DPIIT has also been coordinating these matters with the external affairs ministry.

July 5, 2024
Manufacturing Sector Seeks Policy Continuity and New PLI Schemes Under Modi’s Third Term

Manufacturing Sector Seeks Policy Continuity and New PLI Schemes Under Modi’s Third Term

With the Narendra Modi-led NDA government commencing its third term, the manufacturing sector anticipates policy continuity, increased capital infusion, and new PLI schemes to strengthen India’s position as a preferred manufacturing hub and to enhance a robust and resilient supply chain ecosystem.
Industry insiders are optimistic about the coalition government. The entry of Chandrababu Naidu-led Telugu Desam Party (TDP) into the ruling alliance is seen positively, as Naidu, now Andhra Pradesh’s chief minister, is expected to drive reform and innovation, acting as a “force multiplier.”
“There is comfort in having just two main alliance partners with the BJP. Chandrababu Naidu is perceived as a progressive and forward-thinking politician, and Nitish Kumar, aiming to keep his prospects bright in Bihar, will likely push for the state’s development,” an industry body spokesperson told ET anonymously.
The coalition regime is expected to lead to a more “uniform distribution” of projects across various states.
“We anticipate more even project distribution among states. With BJP’s win in Odisha and its proximity to Andhra Pradesh, areas like Visakhapatnam might see increased industrial investment,” the spokesperson added. However, some officials expressed concerns that big-ticket projects might favor Andhra Pradesh due to Naidu’s influence, potentially intensifying competition between states for projects.
Overall, the TDP partnership with BJP is viewed positively, with Naidu seen as accessible and receptive. The appointment of a TDP cabinet minister for civil aviation is welcomed, as it could expedite approvals for regional airports in southern states.
“There’s no nervousness or uncertainty,” an electronics manufacturing industry representative told ET. “The coalition is seen as enhancing focus on manufacturing, benefiting the electronics sector.”
The manufacturing industry is eager for the continuation and expansion of successful PLI schemes from Modi’s second term, including new incentives for traditional sectors like textiles, cement, and leather.
In the electronics manufacturing industry, attention is on pending proposals with the India Semiconductor Mission (ISM) awaiting cabinet approval, with hopes for progress post the July budget.
In the automotive sector, expectations of policy continuity and a sustained focus on the Make in India initiative are fostering optimism.
“The general sentiment is very positive, with no expectation of losing momentum,” said Soumen Mandal, senior research analyst at Counterpoint Research. “In the automotive and heavy industries sectors, there’s a belief in continued policy direction, as these are major employment sectors that the government aims to further boost in their third term.”

June 14, 2024