Pandemic resulted in a huge loss in the sector of production and manufacturing, hence the government has decided to take an initiative to offer incentives to more sectors to boost the business.
The cabinet has considered a few sectors that are in major requirement of incentives to attract new investors for their growth.
Rajiv Kumar, Chief Chairman of NITI Aayog, has mentioned that the government has decided to provide production-linked incentives for mass management and production of large-good makers, pharmaceutical companies, and medical device manufacturers.
To regain India’s financial wealth and global share, an important decision like this was necessary.
Rajiv Kumar, on 30th October, mentioned, at the Confederation of Asia Chamber of Commerce and Industry [CACCI] which was organized by Federation Chamber of Commerce and Industry [FICCI], that such incentivizing for global and domestic investors, through PLI, will be done respecting the multilateral trade norms.
Any tariff support required will be provided in support of global trades. The flexible incentive will be proposed for five to seven years for initial support.
Recognition of existing investors will be respected while much greater space will be provided to private enterprises.
Product linked incentives has been considered for mobile phones too. The basis of the scheme is to extend the clutches of important sectors vast enough to fulfill the growth.
Units like food processing, battery manufacturing has been considered. PLI is a scheme that remains focused on outcome and output while the incentives will be paid as soon as the goods are manufactured.
Providing huge flexibility to the entrepreneurs and agricultural sector, the pandemic was the perfect opportunity to lay foundations for such support.
Semiconductor packaging and electric components will attract investors and the value chain can be maintained by maintaining an incentive of 4-6% on an incremental sales basis.
Agricultural reforms will definitely attract the private sectors for the growth of sudden drop and its impact on the Indian economy.
Including social profits to the financial profits because of complete growth at the expense of natural capital would not be enough hence social profits will help measure the success at a high rate.