Finance Minister Nirmala Sitharaman announced on Wednesday that businesses have pledged approximately ₹1.07 trillion in investments as part of the government’s production-linked incentive (PLI) scheme.
This initiative aims to bolster domestic manufacturing and has already led to the creation of over 700,000 job opportunities. Under the scheme, manufacturing locations have been established in 24 states and over 150 districts, ensuring widespread economic development.
Additionally, Sitharaman highlighted the success of the PLI scheme in driving exports, with ₹3.4 trillion generated, and boosting production and sales, which reached ₹8.7 trillion. Furthermore, 176 small businesses have been selected as direct beneficiaries of the scheme, promoting growth and innovation in the sector.
The PLI scheme, introduced by the central government in 2020, offers an outlay of ₹1.97 trillion ($26 billion) over a five-year period starting from 2021-22. It aims to attract investments and cutting-edge technology across key sectors, enhance manufacturing capabilities, and improve the competitiveness of Indian companies on a global scale.
Responding to concerns raised by members of parliament regarding the availability of funds to states, Sitharaman reassured that the government has faithfully followed the recommendations of successive finance commissions.
She refuted allegations that the southern state of Karnataka was denied special grants, emphasising that the finance commission’s recommendations have been fully implemented.
Regarding inflation, Sitharaman noted that retail inflation has remained stable, within the Reserve Bank of India’s tolerance band of 2-6%. She highlighted a significant decrease in inflation rates for essential commodities such as atta, dal, onion, and rice. Through government measures, the prices of these products have been reduced, benefiting consumers.
Sitharaman also highlighted positive developments in the employment sector. She stated that the unemployment rate has declined from 6% in 2017-18 to 3.2% in 2022-23. Furthermore, the youth labour force has witnessed growth over the last five years, as evident from the increasing number of new subscribers to the Employees Provident Fund Organization (EPFO) in the 18-25 age group.
