Manufacturing is a sector that began to receive the focus of Prime Minister Narendra Modi and his team of policymakers since the regime assumed power in 2014. It is widely expected that manufacturing will continue to get the support of the government as it did during the tenure of the second term in 2019-23.
The Production Linked Incentive scheme or PLI was introduced in April 2020. It was initially meant for electronics manufacturing but was later extended to 10 other sectors. This scheme was introduced in line with India’s Atmanirbhar Bharat mission.
PLI in toys, leather?
It is possible that the PLI is extended to toy manufacturing and the leather sector too.
India is trying to gain global competitiveness in toy manufacturing, a domain dominated by China.
While the sector is low-tech, it has got a burgeoning market. Both the leather and toy sector have traditionally employed blue-collar workers and have a tremendous potential for creating employment in the lower end of the financial pyramid.
Import duty change?
Change in import-export duty to promote domestic industry is another demand that has been placed before the finance minister.
Among other things experts have pointed out skewed duty structure has been harming the interest of Indian industry. Often input materials carry a higher duty than finished products making it easier to import and sell rather than setting up manufacturing units in India.
Deeptech sector
The deep tech sector is also looking forward to a boost. Deep tech, or deep technology, if used to describe startups the business model of which is based on high-tech engineering or tech advances.
Shipping and defence
The shipping sector is a major logistics service that not only improves an economy’s competitiveness but also creates employment.
The armour system is a vital function for defence forces. India’s defence budget has been a focus area for the Modi government as indeed has been defence-related manufacturing. Experts have pointed out that the armour system will be installed in a mission mode.
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Budget 2024 Expectations: Manufacturing has been a focus area of the Modi government to raise India’s competitiveness on a global scale. This year’s budget could see further movements down that road. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
