Modi’s local ‘champions’ to take Indian manufacturing to Rs 10 lakh crore; here’s govt’s mega plan

FE Online
·3-min read
Indian manufacturing
Indian manufacturing

The Union Cabinet chaired by the Prime Minister Narendra Modi has approved production-linked incentives worth Rs 40,995 crore for electronics manufacturing companies. This is one among other decisions taken today to give further boost to manufacturing in India, and expand it to worth Rs 10 lakh crore in the next five to six years. Union Communications Minister Ravi Shankar Prasad said that two long term policy decisions have been taken to make India a big hub of manufacturing: first in the case of electronics and second in the case of Pharma and medical devices. Production linked incentive scheme for large scale electronics manufacturing has been approved. The scheme will boost domestic manufacturing and attract large investments in mobile phone manufacturing and specified electronic components including Assembly, Testing, Marking and Packaging (ATMP) units.

"The scheme shall extend an incentive of 4% to 6% on incremental sales (over base year) of goods manufactured in India and covered under target segments, to eligible companies, for a period of five years subsequent to the base year as defined," Prasad said.

The proposed scheme is aimed at not only attracting major global manufacturing players, but also encouraging raising a few domestic manufacturing champions, Ravi Shankar Prasad said. The incentives will help the manufacturers in the field of mobile manufacturing and specified electronics components and bring in large scale electronics manufacturing in India. Prasad further added India's electronics production has increased from Rs 1,90,000 crore in 2014-15 to Rs 4,58,006 in 2018-19, at a compound annual growth rate (CAGR) of about 25 per cent. "We hope to generate manufacturing revenue potential of Rs 10 lakh crore by 2025," Prasad said.

He added that there were only two mobile making factories when the government came into power in 2014 but now, there are a total of 260 companies.

Government to invest Rs 3,400 crore for new AYUSH centres

As the health care is the best preventive measure and prevention is better than cure, says Minister of Environment, Forest and Climate Change and Minister of Information and Broadcasting Prakash Javadekar. The Union Cabinet chaired by Prime Minister has approved the inclusion of AYUSH Health and Wellness Centre component of Ayushman Bharat in National AYUSH Mission (NAM). The Government will invest a total of Rs 3,400 crore for establishing 12,500 wellness centers across the country. Out of which 10,000 will come under the ministry of AYUSH while the other 2,500 will be sub-centers under the Ministry of Health and Family Welfare.

The Cabinet has also approved (a) promotion of bulk drug parks for financing common infrastructure facilities in three bulk drug parks with financial implication of Rs 3,000 crore for next five years, and (b) Production Linked Incentive (PLI) scheme for promotion of domestic manufacturing of critical key starting material (KSMs) or Drug Intermediates and APIs in the country with financial implications of Rs 6,940 crore for next eight years.