Circular No.: ES/363/2020-21 12th November, 2020
To: Members of the Council
Sub: Cabinet approves PLI Scheme to 10 key Sectors for Enhancing India’s
Manufacturing Capabilities and Enhancing Exports – Atmanirbhar Bharat
The Production-Linked Incentive (PLI) Scheme has been approved by the Prime Minister, Shri Narendra Modi in the 10 key sectors for enhancing India’s manufacturing capabilities and enhancing exports – Atmanirbhar Bharat (Press Release dated 11th November, 2020). Textile sector is included in these 10 key sectors. Product lines of Textiles are Man-Made Fiber Segment and Technical Textiles.
Relevant extract of the Table given in the Press Release -
PLI scheme -
Implemented by the concerned ministries/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)
Shall be 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.
This scheme across the 10 key specific sectors will make Indian manufacturers globally competitive, attract investment in the areas of core competency and cutting-edge technology; ensure efficiencies; create economies of scale; enhance exports and make India an integral part of the global supply chain.
The Indian textile industry is one of the largest in the world and has a share of ~5% of global exports in textiles and apparel. But India's share in the manmade fibre (MMF) segment is low in contrast to the global consumption pattern, which is majorly in this segment. The PLI scheme will attract large investment in the sector to further boost domestic manufacturing, especially in the MMF segment and technical textiles.
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. 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. 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.
Members may kindly make a note of the above.