PLI 2.0 in Budget 2024: Pushing the envelope towards ‘Making for the World’
Budget expectations: India’s tryst with manufacturing has finally taken a leap of faith. The country’s ambition to become a $10 trillion economy by the turn of this decade is helping reinvent the real potential of its manufacturing sector.
The ensuing global trade and supply chain related sensitivities continue to act as enablers for India to shift gears and change its focus from exporting what it can (or supply based) to a global demand-based export-led diversification approach – all with a view to move up the global value chain.
In this manufacturing-led transformative narrative, if there is one initiative that has hit home, it is the Production Linked Incentives (PLI) scheme. Covering 14 sectors with an initial allocated outlay of $27 billion, it captures the combined visions of ‘Make in India’ and ‘Atmanirbhar Bharat’ and takes it several notches higher to ‘make for the world’.
Coming at a time when global companies are increasingly looking at supply chain realignment, this scheme has played a strategic role in elevating India’s manufacturing capabilities, amplify exports and draw attention of global companies who were looking at India as a viable and sustainable alternative to drive profitability and fuel their global ambitions.
Also Read: Budget 2024: Govt may extend scope of PLI scheme to job-creating sectors
Thescheme has demonstrated its ability to create a deep and wide impact covering Large-Scale Electronics Manufacturing (LSEM), IT Hardware, Bulk Drugs, Medical Devices, Pharmaceuticals, Telecom and Networking Products, Food Processing among others. Perhaps the most noteworthy success story has been in mobile manufacturing, where major smartphone companies have shifted their supplier base to India.
