According to two government officials on Thursday, India intends to relax and broaden some regulations for five industries to enable them to make greater use of the $24 billion in industrial incentives it offers to support domestic manufacturing.
Launched in 2020, the 1.97 trillion rupees production-linked incentive system (PLI) encompasses 14 industries, from drones to electrical items, but has only been effective in a small number of them, leading to evaluations.
A third of the PLI project is made up of the textile, pharmaceutical, drone, solar, and food processing sectors. These are the industries where the modifications are envisaged.
According to the authorities, the government intends to include new items in the textile industry, such as man-made fiber, and give businesses an extra year to reach the production objectives needed to be eligible for program incentives.
According to the authorities, the pharmaceutical industry will also benefit from an extension of the plan by one year, and the amount of money allocated for drone manufacturing incentive payments would increase to 3.3 billion rupees from the present 1.2 billion rupees.
According to the authorities, India intends to expand the program for the food processing industry to include millet-based goods and to include the manufacturing of ingots and wafers into the program for the solar module industry.
According to them, the modifications are being discussed with other federal ministries by the Trade Ministry of India, which is in charge of carrying out the initiative.
Since the specifics of the talks have not been made public, the officials expressed a desire to remain anonymous.
The commerce ministry did not answer an email requesting comment.
“None of the changes currently being discussed require fresh financial allocation, but will draw from the scheme’s savings,” one of the officials said
The food processing incentive programs include consumer products firms like Hindustan Unilever Ltd, ITC Ltd, Nestle India Ltd, and Britannia Industries Ltd, while the solar module manufacturing incentive plan includes companies like Reliance Industries, JSW Energy, and Tata Power.
Only a portion of the PLI incentives have been claimed so far, forcing the government to think of methods to spend whatever money is left over, including adding new industries to the program.