MSME is going to introduce the PLI Scheme in some additional sectors. It will help to boost the growth of the MSME industry. The main focus is on the growth of the industry in the coming years. Sectors like Furniture, Toys, and Apparel are expected to come under the PLI scheme as it has more job potential. The government is looking forward to providing more jobs under this third-time rule. Thus, the industries that have more potential will get a boost in this budget.
Will Your Industry Be A Part Of The PLI Scheme In Modi 3.0?
The government is trying to contribute more to job creation. Thus, sectors like toys, furniture, Apparel, man-made fibre, and technical textiles will add up in the scheme. However, the final decision will come up in the July Budget. Apart from the production-linked Incentives (PLI) scheme, the government might focus on the fund release norms, and special MSME carve-outs in the current budget. It will benefit industries under the schemes and boost MSME growth. The budget will also focus on rural and semi-urban development.
Thus, R&D being the important segment will receive equal importance and incentives from the government. Thus, the scheme will include the following sectors:
- Man-Made Fiber
- Technical Textiles
- Toys
- Furniture
- Apparel
The sources mention an outlay of Rs. 1.97 lakh crores which is $26 billion under the scheme. While it is expected to increase further in the future. It includes Rs. 9,700 crores only which is disbursed as of March 2024. The scheme has been going on for a long time. The main ambition of PLI is to empower these particular industries under it and increase manufacturing and export.
Going on successfully in the market from 2020, the scheme focused on increasing manufacturing. It started with some limited industries only. These were the pharmaceutical industry, medical devices, and electronics. After its beneficial results, the company launched the scheme in 10 other departments in the same year. It included drones by the next year. Thus, so many industries are now getting the benefit of the scheme.
The tech and hardware industry has the major benefit from the scheme. PLI scheme is working well for the existing industries under it. It will be interesting to see the upcoming growth of the industry in the sector. In conclusion, the government will introduce some more existing sectors in the PLI Scheme. These will majorly be those having significant job creation potential which are furniture, toys, apparel and textile manufacturing.
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