How Budget 2024 can cash in on the PLI scheme to unlock Aatmanirbhar Bharat's manufacturing potential
Aatmanirbhar Bharat initiative, aimed at boosting domestic manufacturing and reducing dependence on imports. Launched in 2020, the PLI scheme seeks to incentivize companies to set up and expand their manufacturing capabilities within India, thereby fostering self-reliance and bolstering the country’s economic resilience.
At its core, the PLI scheme provides financial incentives to manufacturers based on their incremental sales from products manufactured in domestic units. These incentives are designed to make Indian products more competitive on a global scale, encourage large-scale manufacturing, and attract investments in critical sectors. The scheme is targeted at sectors where India has the potential to emerge as a global leader, thereby creating significant employment opportunities and boosting exports.
To date, the government has rolled out PLI schemes across 14 key sectors, including electronics, pharmaceuticals, textiles, and white goods. The success of these initial schemes has prompted the government to consider expanding the program to other strategic sectors.
The PLI scheme for railways manufacturing is one of the most anticipated. India has a vast and growing railway network, and enhancing domestic production capabilities in this sector is crucial. The proposed scheme aims to incentivize the production of components, rolling stock, and other railway infrastructure, reducing the need for imports and fostering innovation within the industry. This move is expected to not only create jobs but also
