Industry associations demanded the inclusion of new programmes during pre-Budget talks with Finance Minister Nirmala Sitharaman.
In response to requests from the sector and a number of government ministries, the next Union Budget is anticipated to include production-linked incentive (PLI) schemes for additional categories, including toys, footwear, textiles, and millet-based meals.
PLI programmes are currently in place for fourteen industries, including telecom, mobile phones, drones, textiles, cars, white goods, and medicines.
It is anticipated that new initiatives, especially in labor-intensive industries, will improve home production, lessen reliance on imports, and create more jobs.
The Department for Promotion of Industry and Internal Trade (DPIIT) suggested allocating Rs 2,600 crore for leather and footwear and Rs 3,489 crore for a PLI programme on toys in the February Interim Budget. Funding was only allocated for the 25th fiscal year, though, awaiting Union Cabinet approval. The Interim Budget statement said, “An entity benefiting from any other PLI scheme of the Government of India will not be eligible for the same product.”
A number of government ministries have pushed for additional PLI programmes within the last 12 months. On the other hand, a number of officials have previously stated that new programmes shouldn’t be implemented until the efficacy of existing ones has been determined.
Industry associations demanded the inclusion of new programmes during pre-Budget talks with Finance Minister Nirmala Sitharaman. The PHD Chamber of Commerce and Industry emphasised the need for more programmes in labor-intensive industries including handicrafts, leather, jewellery, and gems and stones.
The Confederation of Indian Industry (CII) suggested an employment-linked incentive programme for industries including toys, garments and textiles, tourism, small retail, logistics, and industries with major manpower requirements and strong growth potential.
Distribution
After the upcoming plan is revealed and launched, it won’t need any further funding clearances because the Centre had already set aside Rs 1.97 trillion for the 14 PLI initiatives three years prior.
Nevertheless, almost Rs 41,000 crore of the allotted Rs 1.97 trillion has not yet been spent. This spare amount could be transferred to other government agencies who lack funding for the PLI programme; this flexibility was included in the scheme’s design.
The undersubscription, lacklustre replies to some programmes (e.g., bulk pharmaceuticals, white goods, textiles), and decreases in scheme allocations are the reasons for the unspent cash.