Centre Likely To Announce Rs 18,000 Cr Incentives To Boost Manufacturing In Six Emerging Sectors

New Delhi, Sept 21 (KNN) India intends to provide incentives totalling Rs 18,000 crore to stimulate domestic manufacturing in six emerging sectors, encompassing chemicals, shipping containers, and vaccine inputs, government officials said.

The proposal is part of the country's Rs 1.97 lakh crore-production-linked incentive scheme (PLI), launched in 2020 which currently targets 14 sectors ranging from electronic products to drones, but has been successful only in a handful of them.

A fraction of the PLI incentives has been claimed so far, prompting the government to allocate unused funds to new sectors.

Limited pay-outs under the scheme could lead to "large" savings which may be redirected to new sectors, reported economic times stating two government officials.

The six new sectors that could join the PLI scheme also include toys, bicycles, leather and footwear, the officials said. These sectors will share the Rs 18,000-crore-rupee allocation that is being carved out from the scheme's original outlay, they added.

India sees the PLI scheme as crucial to boosting the broader Indian economy which has been starved of private investment for nearly a decade and is struggling to create adequate jobs, particularly in manufacturing.  (KNN Bureau)