The Modi government will spend Rs 2 lakh crore over the next five years to provide production-based incentives to a total of 10 sectors and to fund the viability gap funding of infrastructure projects.
The government has announced a new package of 2 lakh crore rupees for the industry, giving a big relief to the industrial world of Corona. The government has decided to give production-based incentives (PLIs) to 10 sectors. The Union Cabinet approved the proposal on Wednesday.
Finance Minister Nirmala Sitharaman informed the cabinet decision that the government will spend Rs 2 lakh crore in the next five years to provide production-based incentives to 10 sectors and to fund the viability gap funding of infrastructure projects.
He said that this will create jobs, support the emerging sector, and promote a self-reliant India. Significantly, to provide relief to the people and industry of the country troubled by Corona, the government is constantly giving relief packages. This can be called another relief package.
These sectors will get relief
He said that the sectors that will get relief include advanced chemistry cell batteries (Rs 18,100 crore), electronic and technology projects (Rs 5000 crore), automobiles and auto components (Rs 57,042 crore), pharmaceutical drugs (Rs 15,000 crore), telecom and networking. Products (Rs 12,195 crore), Textile Products (Rs 10,683 crore), Food Products (Rs 10,900 crore), Solar PV Modules (Rs 4,500 crore), White Goods (Rs 6,238 crore) and Specialty Steel (Rs 6,322 crore).
Apart from this, assistance has also been announced for many PPP projects under Y Billity Gap Funding for many sectors of infrastructure. Under this also the government will spend a large amount.
What happens to be PLI
It is worth noting that the government announced the Production Based Incentive Scheme (PLI) in March this year to promote manufacturing in the country and reduce the export bill. Under this, companies are given incentives based on the increase in sales of products made in the factories of the country. This also encourages foreign companies to set up production in India. Earlier, the benefit of this scheme has been given to mobile handsets and pharmaceutical companies.
This will give relief and accelerate to the manufacturing sector of the country in particular, which contributes about 16 percent of GDP. This will make Indian manufacturing competitive in the world. This will also boost exports.