Budget 2024 Expectations: PLI may be extended to toys, leather sectors | Biz News

Budget Expectations 2024: Manufacturing has been a focus area for the Modi government to make India more competitive globally. This year’s budget could see further moves in that direction.

The budget may continue to emphasize on manufacturing to make India more competitive and also create jobs. (Image source: X – @FinMinIndia)

Manufacturing has been a focus for Prime Minister Narendra Modi and his team of policymakers since the regime took power in 2014. Manufacturing is widely expected to continue to enjoy government support, as it did during his second term in office from 2019-2023.

The Production Linked Incentive or PLI scheme was introduced in April 2020. Initially, it was meant for electronics manufacturing but was later expanded to 10 other sectors. This scheme was introduced in line with India’s Atmanirbhar Bharat Mission.

PLI in toys, leather?

It is possible that PLI will be extended to toy manufacturing and leather sector as well.
India is trying to gain global competitiveness in toy production, a field which is dominated by China.

Although the sector is low-tech, it has a growing market. Both the leather and toy sectors traditionally employ manual workers and have huge potential to create jobs at the bottom of the financial pyramid.

Change in import duty?

Another demand presented to the Finance Minister is to change import-export customs duties in order to support domestic industry.

Experts have pointed out, among other things, that the uneven duty structure is detrimental to the interests of Indian industry. Often, input materials are subject to higher duty than finished products, making it easier to import and sell rather than set up manufacturing units in India.

Deeptech Sector

The deep tech sector is also poised for growth. Deep tech, or deep technology, as the term is used to describe startups whose business model is based on high-tech engineering or technological advances.

Shipping and Defense

The shipping sector is an important logistics service that not only improves the competitiveness of the economy but also creates jobs.

The armour system is a key function for the defence forces. India’s defence budget has been an area of ​​focus for the Modi government, as has defence-related production. Experts have indicated that the armour system will be installed in mission mode.