Budget 2023-24: The government has already rolled out the scheme with an outlay of about Rs 2 lakh crore for as many as 14 sectors, including automobiles and auto components
The government is likely to extend fiscal incentives for production of toys, bicycles, leather and footwear in the forthcoming budget as it looks to expand production linked incentive (PLI) scheme to cover more high-employment potential sectors, sources said.
The government has already rolled out the scheme with an outlay of about Rs 2 lakh crore for as many as 14 sectors, including automobiles and auto components, white goods, pharma, textiles, food products, high efficiency solar PV modules, advance chemistry cell and speciality steel.
The scheme aims to make domestic manufacturing globally competitive and create global champions in manufacturing, and it is yielding solid results, sources said.
A proposal to extend PLI scheme benefits to different sectors such as toys and leather are at advanced stages of finalisation and there is a likelihood that it may figure in Budget, they added.
One of the sources said there are some savings from this Rs 2 lakh crore which could be considered for other sectors.
Budget for 2023-24 is scheduled to be presented by Finance Minister Nirmala Sitharaman on February 1.
The PLI scheme is aimed at making Indian manufacturers globally competitive, attracting investment in the areas of core competency and cutting-edge technology; ensuring efficiencies; creating economies of scale; enhancing exports and making India an integral part of the global supply chain.
As of September 2022, the PLI scheme for LSEM (Large-Scale Electronics Manufacturing) has attracted investment of Rs 4,784 crore, and led to total production of Rs 2,03,952 crore, including exports of Rs 80,769 crore, according to a government statement.
The PLI for LSEM has attracted leading global players, including Foxconn, Samsung, Pegatron, Rising Star and Wistron while leading domestic companies, including Lava, Micromax, Optiemus, United Telelinks Neolyncs and Padget Electronics, have also participated in this scheme.
Under the scheme, all the 14 sectors have received significant participation from the private sector.
According to a statement of the commerce and industry ministry issued on December 16 last year, 650 applications have been approved under 13 schemes so far and more than 100 MSMEs are among the PLI beneficiaries in sectors such as bulk drugs, medical devices, telecom, white goods and food processing.
The scheme was specifically designed to boost domestic manufacturing in sunrise and strategic sectors, curb cheaper imports and reduce import bills, improve cost competitiveness of domestically manufactured goods, and enhance domestic capacity and exports.