Ease of Doing Business for MSMEs: Covid-hit MSME sector may well stay bereft of a committed Production-Linked Incentive (PLI) scheme as the government is not thinking of the exact same, at least for now. Even as numerous market and trade associations or bodies have been pitching for a committed PLI scheme for MSMEs, “So far as NITI Aayog is concerned, as of now, there is no proposal under active consideration for dedicated PLI scheme for MSME sector,” MSME Minister Narayan Rane stated. Finance Minister Nirmala Sitharaman in her union price range 2021-22 speech had announced an outlay of Rs 1.97 lakh crore for PLI schemes for 13 sectors to enhance manufacturing and create employment possibilities. This meant that minimum production in India as a outcome of the PLI scheme was anticipated to be more than $500 billion in 5 years.
Rane, who was responding to a query in the Rajya Sabha on Monday, was also asked whether or not NITI Aayog was thinking of to divide PLI scheme into two components – a bigger scheme for huge businesses with greater targets and a different for smaller sized ones and also whether or not the NITI Aayog had advisable extending it (scheme) across sectors to medium-sized industries for self-reliance and rising domestic manufacturing. Earlier, apart IIA, market bodies like Electronic Industries Association of India, Engineering Export Promotion Council, and other people had also urged the government for a PLI scheme specifically for MSMEs. Earlier this year, a media report had claimed that NITI Aayog was working on a committed PLI scheme for MSMEs.
“We had also requested for MSME-dedicated PLI as MSME sector is spread across all industries. The scheme could have benefited with much more production and new jobs in MSMEs along with enhanced exports as the sector has been looking to recover despite limited resources. If the dedicated PLI scheme is not launched ahead, then there would be huge discouragement among MSMEs. If only a few sectors would be supported under PLI, the government’s vision of self-reliance would be difficult to be realised,” Pankaj Kumar, President, Indian Industries Association (IIA) told TheSpuzz Online.
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The nine sectors for which the scheme was currently authorized integrated electronic or technologies items (Rs 5,000 crore outlay for 5 years), pharmaceuticals drugs (Rs 15,000 crore), telecom & networking items (Rs 12,195 crore), meals Products (Rs 10,900 crore), higher-efficiency solar PV modules (Rs 4,500 crore), and so on. The other 4 sectors beneath PLI awaiting Cabinet approval have been automobiles & auto elements, sophisticated chemistry cell (ACC) battery, textiles, and specialty steel.
PLI scheme gives incentives to businesses for enhancing their domestic manufacturing apart from focusing on minimizing import bills and enhancing the price competitiveness of regional goods. PLI scheme gives incentives on incremental sales for items manufactured in India. The 1st 3 PLI schemes have been authorized in March last year followed by 10 new schemes which have been notified in November of which six have been authorized later. The scheme for respective sectors has to be implemented by the concerned ministries and departments.