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Manufacturing likely to get big push in Budget 2021

Manufacturing likely to get big push in Budget 2021
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Manufacturing likely to get big push in Budget 2021 

Highlights

PLI scheme could get a further fillip to attract investments; Atmanirbhar Bharat will be in focus

New Delhi: Manufacturing industry is expected to get a big push in the Union Budget 2021-22 as the country focuses on ways to reverse the Covid-19 induced economic slowdown. The mantra of the Budget could be drawn up around the Atmanirbhar Bharat scheme, with specific push for migrant labourers - importance of this segment which has been highlighted only with the onset of the pandemic, sources said.

Besides, manufacturing, other sectors including healthcare, agriculture, infrastructure and housing would also be the focus in the coming Budget, to be announced in less than 35 days by Finance Minister Nirmala Sitharaman.

Sources said that the Production-Linked Incentive (PLI) scheme to boost manufacturing will get a further push to attract investments, both foreign and domestic, while the Narendra Modi government is set to position India as the hub for vaccine development, especially in the wake of the pandemic.

The government has already introduced the PLI scheme to boost manufacturing in India while pushing the Atmanirbhar policy.

PLI scheme for 10 labour intensive sectors including pharmaceuticals, telecom, automobiles and auto components, textile, food products among others have already been approved the Cabinet. These sectors are expected to generate employment while making the Indian manufacturers globally competitive.

The PLI scheme is aimed at attracting investments and creating economies of scale. The scheme is also expected to enhance exports and make India an integral part of the global supply chain at a time when India is trying to woo investors looking to set up manufacturing hubs outside China.

"Infrastructure and housing sectors will have huge implications in terms of jobs as well as having a ripple effect on the economy. We need to look at automatisation of the farm sector and penetration of services industry in the rural areas as well," Assocham secretary general Deepak Sood said.

"The PLI scheme which has borne fruits for the industry will get sharper in order to draw more investments," an insider said.

"We need to emphasise on the country's middle class. Policies will be framed keeping in mind the needs of the middle class, which include jobs and improvement of their living standards," Gopal Krishna Agarwal, spokesperson of the BJP's economic policies told IndiaNarrative.com. "The PLI could get more expanded as that will give us the jobs that we require," Agarwal said.

Union Budget 2021-22 assumes immense importance as it comes in the wake of the Covid 19 pandemic and ratings agencies and analysts would be combing through the finer points. Sood pointed out said that the efficient schemes must be chalked out at aimed at the urban as well as rural poor of the country.

"The focus now has to be revival of growth, we are in control of things now, we need to keep up the memento," Sood said.

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