A Parliamentary Standing Committee on Commerce has recommended that the Indian government extend the tenure of the Production Linked Incentive (PLI) scheme and expand its coverage to include additional high-employment sectors such as chemicals, leather, apparel, toys, jewellery, and handicrafts. The committee believes that extending the scheme will provide much-needed support to these industries, create more jobs, and boost India’s manufacturing sector.
The report also highlights concerns regarding excessive red tape and administrative delays that are hindering the smooth implementation of the PLI scheme. It calls for streamlining compliance procedures and reducing bureaucratic hurdles to ensure that businesses can fully benefit from the incentives.
Additionally, the committee has emphasized the need to strengthen value-added manufacturing in the man-made fibre (MMF) segment to make India more competitive in the global textile industry. It has also suggested introducing measures to protect pharmaceutical manufacturers from volatile international market prices, which can impact their profitability and long-term growth.
The recommendations come as India aims to enhance its manufacturing capabilities and reduce dependency on imports. The PLI scheme, launched to encourage domestic production in key sectors, has been a crucial part of the government’s “Make in India” and “Atmanirbhar Bharat” initiatives. Extending its duration and making it more efficient could help drive economic growth and attract greater investment into the country.
