To give an impetus to the manufacturing sector, the Union Cabinet on Wednesday approved a mega-production linked incentive (PLI) scheme for 10 sectors.
The total outlay has been pegged at Rs 1,45,980 crore. Announcing the decision, Union Finance Minister Nirmala Sitharaman said that the scheme would entail an expenditure of about Rs 2 lakh crore.
Accordingly, the scheme is expected to attract foreign players, boost production, increase exports, and generate employment in the country.
Earlier, the Centre had rolled out a similar scheme for the electronics manufacturing sector, particularly for mobile phone manufacturing, to curb increasing imports.
The concerned sectors will include advanced chemistry cell batteries, electronic products, automobiles and auto components, pharma, telecom and networking products, textile, food products, white goods and specialty steel.
Post the announcement, Union Commerce Minister Piyush Goyal tweeted: "Strengthening our vision of Aatmanirbhar Bharat, Govt under PM@NarendraModiaji approves Production Linked Incentive scheme for 10 Sectors. Revolutionising Make in India, this will help create jobs, promote exports and make India the factory of the world."
An official statement said: "The PLI scheme will be implemented by the concerned ministries or departments and will be within the overall financial limits prescribed. The final proposals of PLI for individual sectors will be appraised by the Expenditure Finance Committee (EFC) and approved by the Cabinet.
"Savings, if any, from one PLI scheme of an approved sector can be utilized to fund that of another approved sector by the Empowered Group of Secretaries. Any new sector for PLI will require fresh approval of the Cabinet."
The statement added: "The Prime Minister's clarion call for an 'Aatmanirbhar Bharat' envisages policies for the promotion of an efficient, equitable and resilient manufacturing sector in the country.
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"Growth in production and exports of industrial goods will greatly expose the Indian industry to foreign competition and ideas, which will help in improving its capabilities to innovate further."
In addition, it said that the promotion of the manufacturing sector and creation of a conducive manufacturing ecosystem will not only enable integration with global supply chains but also establish backward linkages with the MSME sector in the country.
"It will lead to overall growth in the economy and create huge employment opportunities," the statement said.
The highest outlay has been made for the automobile and auto component sector, at over Rs 57,000 crore.