PLI scheme to only give kickstart, ultimately competition will prevail: Goyal to industry
New Delhi, Feb 3 (PTI) The industry should look at the measures under the Production-Linked Incentive (PLI) scheme as an initial support because going forward, the industry has to face competition to grow further, Commerce and Industry Minister Piyush Goyal said on Saturday.
He asked the PLI incentive beneficiary firms to share their “constructive criticism and feedback for better implementation of the scheme”.
The idea is to make India a manufacturing powerhouse and there is a long journey ahead, he said.
More than 1,200 stakeholders, including government officials and industry players are meeting here and deliberating on the progress of 14 PLI schemes.
The scheme incentives should not be seen as crutches and “we are not looking to make you dependent on government subsidies. This is only like a kickstart…
“The PLI scheme is only meant to give you that little bit of a boost to kickstart your effort and please look at it as a kickstart, an initial support (because) ultimately competition will prevail,” Goyal said.
“We will ultimately have to compete with each other and with the world,” he added.
The minister also suggested that the industry gradually focus on global markets and come out of the “cosy comfort” of India’s large domestic market.
A more outward looking effort would help add scale, volume and enhance cost effectiveness, he said, adding, “We are also looking for your cooperation and collaboration”.
Speaking at the meeting, Department for Promotion of Industry and Internal Trade (DPIIT) Secretary Rajesh Kumar Singh called upon the industry to focus on value addition as India’s manufacturing Gross Value Added (GVA) is about 17.4 per cent.
It is not enough for a country that is looking to become a developed nation and for huge job creation, Singh said.
He added that certain quarters have raised some problems with regards to the scheme and the government is working to address those issues.
He added that local value addition is happening in sectors such as mobile and white goods.
