Mahindra Group Chairman Anand Mahindra has mentioned that the federal government’s announcement of a production-linked incentive scheme for 10 more sectors, together with auto, alerts a “dramatic shift” within the perspective in direction of trade.
On November 11, the Cabinet authorized production-linked incentive (PLI) scheme for 10 extra sectors, together with cars and auto components, prescribed drugs, textiles and meals merchandise, with an outlay of about ₹1,45,980 crore over a interval of 5 years.
Under one other PLI scheme, an outlay of ₹51,311 crore has already been authorized.
“I took some time to explore the contours of this initiative. I don’t use the term ‘game-changer’ too often but it’s apt in this case. For me, what’s much more important than the mechanics of the scheme is the dramatic shift it signals in the attitude towards industry,” Mr. Mahindra mentioned in a tweet.
In one other tweet, he mentioned, he began his profession through the “License Raj” the place scale and progress have been “frowned upon.”
“Finally, this policy signals recognition that a) scale is imperative in order to nurture globally competitive businesses b) large enterprises foster a large ecosystem of small/micro enterprises,” Mr. Mahindra mentioned within the tweet.
In one other tweet, he mentioned, “It makes eminent sense to initially catalyse the growth of selected sectors with world-beating potential. I believe the chosen industries will rise to the challenge if the policy is applied consistently & transparently.”
The Auto and auto part trade our bodies — Society of Indian Automobile Manufacturers (SIAM) and Automotive Component Manufacturers Association (ACMA) — have already mentioned that the initiative will assist the trade not solely change into globally aggressive however self-reliant additionally.
SIAM expects the scheme will enhance competitiveness and take the expansion of the sector to the following stage whereas ACMA mentioned that the PLI scheme may even encourage the trade in changing into a web exporter and lowering its dependence on imports.