Union Budget 2021: PLI schemes announced for 13 sectors

Finance minister Nirmala Sitharaman, while presenting the union budget on February 1, announced in her speech that the government looks to spend Rs 1.97 lakh crore on various Production Linked Incentive (PLI) schemes over the next 5 years which will be an addition to the Rs 40,951 crore announced for the PLI for electronic manufacturing schemes.

A scheme of Mega Investments Textile Park will be launched in addition to the PLI Scheme which will create world-class infrastructure with plug and play facilities to enable global champions in exports, said Union Finance Minister Nirmala Sitharaman.

To achieve double-digit growth, PLI schemes to create manufacturing global champions for an Atma Nirbhar Bharat have been announced for 13 sectors, she added. 

This would eventually attract global players in the manufacturing sector and make India globally competitive by attracting investment. It will further encourage local companies to set up or expand existing manufacturing units in the country. The move is significant for the manufacturing sector in a time as it faces a crisis because of the ongoing coronavirus pandemic. 

“Seven textile parks will be developed in the country. Emphasis will be laid on asset monetisation. More economic corridors will be built across the country to further augment road Infrastructure,” she said. 

In October last year, the Ministry of Electronics and IT had approved the applications of Samsung, Foxconn Hon Hai, Pegatron, Rising Star and Wistron from among the international applicants for manufacturing of mobile phones in India under the PLI scheme.

The domestic companies approved for mobile phone manufacturing under the scheme are Lava, Bhagwati (Micromax), Padget Electronics, UTL Neolyncs and Optiemus Electronics.

Further, six companies approved under the Specified Electronic Components Segment are AAT&S, Ascent Circuits, Visicon, Walsin, Sahasra and Neolync.

The PLI scheme for large-scale electronics manufacturing notified on April 1, 2020, extends an incentive of 4-6 percent on incremental sales (over base year) of goods under target segments that are manufactured in India to eligible companies, for a period of five years subsequent to the base year (FY2019-20).

In November, the government announced a mega PLI scheme for 10 sectors, including advanced chemistry cell battery, electronic products, automobiles and auto components, pharma, telecom and networking products, textile, food products, white goods and speciality steel.