Plans to broaden PLI schemes on hold, says DPIIT secy Singh

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₹1.97 trillion (over $26 billion) to enhance manufacturing capabilities. The 14 sectors enjoying the benefits of PLI schemes include telecommunication, white goods, textiles, medical devices manufacturing, automobiles, speciality steel, food products, high-efficiency solar PV modules, advanced chemistry cell batteries, drones, and pharma. Since then several other sectors have approached their respective ministries asking to be included under the PLI scheme.

The PLI schemes intend to attract investments and cutting-edge tech across key sectors, ensure efficiency, and bring economies of size and scale in the manufacturing sector to make Indian companies and manufacturers globally competitive. As of June 2023, 733 applications across 14 sectors under the PLI schemes were approved with an expected investment of ₹3.65 trillion. Meanwhile, Singh said tariffs imposed by the government on imports are a policy tool to protect domestic industry against dumping and predatory pricing and not a revenue source.

“I think over time, we will have to move towards a lower tariff regime for all. We will come to a stage where high tariffs will have to phase out in the context of FTAs," he added. Recently, the Indian Express reported that India is likely to lower tariffs on a range of items, including high-tariff products such as cars, whiskey and machinery items, for the first time under the free trade agreements (FTAs) with developed economies and is moving away from looking at tariffs as a source of revenue during negotiations, quoting government officials.