The central government has identified 24 sectors to reduce dependence on imports and increase domestic production. These sectors will be given special incentives under Self-Reliant India so that these sectors can increase their production domestically.
new Delhi. The Narendra Modi government at the Center is in great readiness to promote its ambitious plan ‘Self-reliant India’. According to the information received from sources, very soon it can announce special incentives to increase production in many sectors including toys, sports goods, automobiles, textiles. Top government sources have informed that the government has identified a total of 24 sectors, which will be given special incentives. This will increase domestic production in these sectors and reduce dependence on imports. It is possible that it will be announced in another relief package.
The government will give incentives to all these sectors in different ways, so that domestic production can be reduced. Also, it will help India to establish its foothold in the field of exports. According to the information received, it will include companies making food processing, specialty chemicals, furniture, pharma, steel, solar products and plastics.
Actually, earlier the central government was choosing a dozen sectors for this special incentives, but in the meeting held in the Prime Minister’s Office (PMO), it was decided to increase the scope to 24 sectors.
How will there be incentives?
For this the round of the meeting of a committee of secretaries is going on. According to the proposal so far, companies of these sectors will be promoted in 3 ways. The first is Production Linked Incentives (PLI), which will cover many sectors. This will be for those sectors where cash incentives can be given to increase production. Cash incentives can be given on the basis of increasing product production annually.
The other incentives are being named Phase Manufacturing Plan (PMP- Phase Manufacturing Plan). Under this new scheme, the central government will reduce imports gradually. For this, import duty will be increased in installments, it will be encouraged by imposing quality control like non-tariff barrier.
The third way would be the Free Trade Agreement. Steps will be taken to curb the cheap items being imported into India by misusing it. It will be reviewed first. It is likely that these announcements may be made in the second installment of the relief package.