Budget 2024 Expectations: Deloitte said that to encourage the manufacturing sector and generate employment, the government may expand the scope of the PLI scheme to include sectors such as apparel, jewelery and handicrafts in the upcoming interim budget.
Currently, the Production-Linked Incentive (PLI) scheme is available for 14 sectors.
Also read: Expectations from Budget 2024 Income Tax: There is no possibility of increasing exemption in the budget
Rajat Wahi, partner, Deloitte India, said increasing rural incomes is one way to deal with inflation and falling consumption demand.
“Today we have 14 sectors under the PLI scheme, but many of these sectors do not generate employment on a large scale. Leather, apparel, handicrafts, jewelery – many of these sectors need to be brought into the PLI scheme as they are the highest employment generating sectors. This will help low-income families as well as urban people,” Wahi told PTI.
The government is expected to take measures to support sustainable income growth among rural households, thereby boosting the disposable income of the rural economy, Deloitte said in its budget expectations report.
Deloitte said, “One way could be to spend more on building rural infrastructure or provide incentives that improve cash flows… Expanding the scope of PLI schemes to sectors such as chemicals and services could create more manufacturing demand “
The PLI scheme was announced for 14 sectors in 2021, including telecommunications, white goods, textiles, medical devices manufacturing, automobiles, special steel, food products, high-efficiency solar PV modules, advanced chemistry cell batteries, drones and Pharma included. Outlay of Rs 1.97 lakh crore.
PLI schemes have resulted in investment of over Rs 1.03 lakh crore till November 2023, generating production/sales of Rs 8.61 lakh crore and generation of over 6.78 lakh employment.
746 applications have been approved in 14 sectors with an expected investment of more than Rs 3 lakh crore.
The schemes aim to attract investment in key sectors and cutting-edge technology; To ensure efficiency and bring economies of size and scale in the manufacturing sector, and make Indian companies and manufacturers globally competitive.
Deloitte further said that PLI schemes for space tech startups are also needed to promote local manufacturing and encourage capacity building within the country. This will help in promoting domestic production and attracting investment by providing financial incentives to manufacturers based on their production.
budget 2024 date
Finance Minister Nirmala Sitharaman is going to present the interim budget 2023-24 on February 1.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed – PTI)
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