The budget will defeat China, will the government go ahead with PLI?

If India's economy wants to make the next revolution, then it will have to focus on the manufacturing sector. In such a situation, will the government go ahead with its 'Make in India' or 'PLI scheme' in the interim budget 2024? Let us understand...

Ever since Prime Minister Narendra Modi's government came to power, its focus has been on expanding the manufacturing sector. For this, the government has started 'Make in India', and to gain an edge over China at the time of Covid, it also brought 'PLI Scheme'. If we look at the last 3 decades, almost every government of India has included the manufacturing sector in the economy. Has worked towards increasing the contribution of. In such a situation, will the government use the interim budget to challenge China?

Currently, the contribution of manufacturing sector in India's economy is between 15 to 20 percent. Governments are trying to increase it to 25 percent. At present, the government's flagship scheme to promote manufacturing provides overall tax benefits of 3 to 5 percent to 14 different industries. In such a situation, is this enough to achieve the government's goal of 'import less and export more'?

Policy to challenge China

China is still the manufacturing hub of the world. After Covid, many big companies of the world have moved out of China, in which India, Bangladesh, Vietnam and Philippines have benefited, but can India's PLI scheme completely challenge China?

The Government of India is working on a new industrial policy. This will be a big change at the industry level in the country after 1956 and 1991. In a way, this will be the third industrial policy of the country. The main focus of this policy is to make India a competitive manufacturing hub for the rest of the world. So that this can promote exports.

Right now this policy is under discussion among the ministries. Its focus is on sustainability, research and development, ease of doing business and MSME sector. Anyway, in a huge country like India, no sector can be made strong without strengthening MSMEs. At present, the PLI scheme has mainly benefited the textile, AC, LED component, electronics, pharma and telecom sectors.

Will emphasis be seen in the budget?

Although this is only an interim budget, the government will be barred from making major announcements. But if we look at the last interim budget, the government has made many big announcements. At present, there is a lot of pressure on the government regarding 'unemployment'. In such a situation, the government can make some announcements regarding the manufacturing sector which will help in increasing employment in the country.