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Business News/ Economy / Businesses pledged 1.07 trillion of investments under PLI scheme: Sitharaman

Businesses pledged ₹1.07 trillion of investments under PLI scheme: Sitharaman

The PLI scheme has led to ₹3.4 trillion of exports and ₹8.7 trillion of production and sales

Union finance minister Nirmala Sitharaman. (Photo: ANI)Premium
Union finance minister Nirmala Sitharaman. (Photo: ANI)

NEW DELHI:Businesses have committed about 1.07 trillion of investments under the government’s production-linked incentive (PLI) scheme to scale up domestic manufacturing, helping create job opportunities for over 700,000 people, finance minister Nirmala Sitharaman said on Wednesday.

“Manufacturing locations (under the PLI scheme) are coming up in 24 states and more than 150 districts," Sitharaman said.

The PLI scheme has led to 3.4 trillion of exports and 8.7 trillion of production and sales, and 176 small businesses have been selected as direct beneficiaries of the scheme, Sitharaman added.

PLI schemes across 14 key sectors were announced by the Centre in 2020 with an outlay of 1.97 trillion (over $26 billion) for a period of five years starting from 2021-22 to enhance manufacturing capabilities.

The purposes of the PLI scheme is to attract investments and cutting-edge technology across key sectors, ensure efficiency, and bring economies of size and scale in the manufacturing sector to make Indian companies globally competitive.

Responding to questions from members of parliament on concerns about the Centre allegedly not making enough funds available to states, Sitharaman said the government has followed the recommendations of successive finance commissions “to the last word".

She refuted the Karnataka government’s charge of denying special grants to the southern state despite the recommendations of the 15th Finance Commission.

“I want to assure this House, whatever the finance commission has recommended I follow it to the last word," Sitharaman said.

The finance minister said Karnataka received 61,691 crore as tax devolution proceeds from during FY2011-FY2015, and 1.5 trillion from FY16 to FY21.

For the four years from FY22 to FY25, Karnataka had received tax devolution proceeds of nearly 1.3 trillion.

The state is expected to receive tax devolution of 1.7 trillion during the five-year period between FY2022-2026, Sitharaman said.

So far, Karnataka has also received about 6,280 crore under the Centre’s 50-year interest-free loan scheme, she added.

Speaking on inflation, the finance minister said retail inflation, currently stable and within the Reserve Bank of India’s (RBI) tolerance band of 2-6%, declined from an average of 6.8% in April-December 2022, to 5.5% in the April-December 2023 period, while core inflation declined from 5.1% in April 2023 to 3.8% in December 2023.

“As a result of steps taken by the government, prices of essentials like atta, dal, onion and rice have also come down," Sitharaman said.

“2.37 lakh tonne of ‘Bharat’ atta at the rate of 27.5 a kilogram has already been sold to the public. To that extent, the price has gone down," Sitharaman added.

The minister also said 396,000 tonnes of onion at 25 a kg have been offloaded into the market by 3 February. Dal and rice are also being sold to the public at subsidised prices.

The minister said the unemployment rate has decreased from 6% in 2017-18 to 3.2% in 2022-23.

The labour force of the youth has also increased over the last five years, Sitharaman said.

“Since May 2023, the number of new subscribers to Employees Provident Fund Organization (EPFO), these are net figures, not gross figures, in the age group of 18-25 years has consistently exceeded 55% of the total new EPF subscribers," the minister added.


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Rhik Kundu
Rhik writes about the Indian economy and its crucial indicators. He is constantly navigating corporates, decoding policies, and dabbling with everything in between.
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Published: 07 Feb 2024, 10:35 PM IST
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