The business community in India is advocating for the inclusion of labor-intensive sectors, such as apparel, toys, footwear, and handicrafts, within the scope of the Production Linked Incentive (PLI) scheme. This push comes as various industry stakeholders recognize the potential economic benefits that can be derived from extending the PLI scheme to these sectors.
The PLI scheme was introduced by the government to drive investment, enhance manufacturing capabilities, and boost exports in select sectors. It provides financial incentives to eligible companies based on their incremental production, with the aim of promoting domestic production and reducing dependence on imports. Initially, the PLI scheme primarily covered high-tech sectors like electronics, pharmaceuticals, and telecom equipment.
However, advocates argue that expanding the PLI scheme to include labor-intensive sectors could have far-reaching positive impacts. These sectors are significant contributors to employment generation in India, especially for low-skilled and semi-skilled workers. Including them under the PLI scheme would incentivize companies to invest in modernizing their production facilities, adopting advanced manufacturing techniques, and improving their supply chains. This, in turn, would lead to increased productivity, competitiveness, and job creation.
One such sector that stands to benefit from the PLI scheme’s expansion is the apparel industry. India is one of the world’s largest producers and exporters of textiles and garments. By including apparels under the PLI scheme, the government would encourage manufacturers to upgrade their machinery, introduce automation, and enhance product quality. This, in turn, would help the industry become globally competitive, attract foreign direct investment, and increase its share in the global market.
Similarly, the toy industry, another labor-intensive sector, has substantial growth potential. India has a rich tradition of toy-making, and expanding the PLI scheme to include this sector would give a significant impetus to its development. Incentivizing toy manufacturers to adopt modern technologies, improve design capabilities, and adhere to international quality standards would not only boost domestic production but also position India as a global hub for toy manufacturing.
The footwear industry, with its large-scale employment opportunities, is yet another sector that could benefit from the inclusion in the PLI scheme. By incentivizing investment in modern infrastructure, research and development, and skill development, the government can help the industry become more competitive and increase its export potential.
Lastly, handicrafts, which are an integral part of India’s cultural heritage, also warrant inclusion under the PLI scheme. The handicraft sector employs numerous artisans and craftsmen across the country. Extending the PLI scheme to this sector would encourage the adoption of modern techniques, preservation of traditional crafts, and market expansion, thereby revitalizing this industry and preserving India’s rich artistic traditions.
In conclusion, there is a growing consensus among India Inc. that labor-intensive sectors like apparel, toys, footwear, and handicrafts should be included within the scope of the PLI scheme. Expanding the PLI scheme to cover these sectors would provide them with the necessary incentives to upgrade their manufacturing capabilities, enhance competitiveness, and contribute significantly to job creation and economic growth. It is imperative for the government to carefully consider this proposal and take appropriate steps to harness the immense potential of these sectors to bolster India’s industrial landscape.
