Union Minister Rajeev Chandrasekhar asks manufacturers not to view PLI as permanent policy

New Delhi, Mar 3 (KNN) The production linked incentive (PLI) scheme should be considered as a transition period for India and not as a permanent solution, said Rajeev Chandrasekhar, minister of state for IT and electronics at the Mint-Zetwerk Smart Manufacturing Summit 2023.

He said the PLI scheme aims for the country to move towards becoming a globally competitive economy achieving USD 300 billion in electronics manufacturing.

“PLI, I don’t think should be thought of as a permanent let us say part of the equation of being a manufacturing economy. It is a way to bootstrap the economy or bootstrap the players. But it will more than be compensated by all of the other efficiencies that these volumes and these gains will create over time,” he said.

It was addressing the disadvantage between India and its cost structure in the value chain versus Vietnam or China, he said.

But there were more factors such as ease of doing business, rationalization of levies, import and export tariffs and creation of logistics ecosystem that will be responsible for taking India closer to its goal by 2026, he added. 

He said that the government was open to partnering with industry for innovative models of skilling which will lead to people with 80 per cent of the base skills needed to make the industry competitive.  (KNN Bureau)