India's production-linked payouts to rise to ₹13,000 crore in 2023: Report

livemint.com:

₹13,000 crore ($1.6 billion), news agency Reuters quoted a top trade official on 11 August as saying. As per details, the government pays local manufacturers -- under the $24 billion scheme -- when targets such as sales are met, aiming to boost investment in manufacturing.

Though targets differ from sector to sector. The production-linked payouts, launched in 2020, cover 14 sectors, ranging from electronic products to pharmaceutical drugs, and are crucial to boosting jobs in manufacturing, an area where India has struggled, added the report.

ALSO READ: Govt assuages industry concerns on laptop import curbs in high-level meeting Trade Ministry's department for Industry and internal trade promotion Secretary Rajesh Kumar Singh said that part of the scheme's 24 billion incentive amount which doesn't get utilized might be redirected to some other sectors or in reworked schemes. Meanwhile, the government has assured global players in the laptop and IT hardware manufacturing space that there won’t be a ‘license raj’ policy that will be adopted the government but the move to prohibit non-licensed imports of laptops, tablets, and servers et al was aimed at boosting domestic production locally.

The meeting came days after India imposed restrictions on laptops, tablets, and servers among other items on 3 August, and a day later extended the deadline for implementing the restrictions till November 1, 2023. The move took the industry by surprise and requests for more time for compliance were made to the government, Mint reported last week.