PLI Will Reduce Imports From China By 20 Percent
PLI will reduce imports from China by 20 percent, SBI Ecowrap report – likely to increase the country’s GDP by $ 8 billion.
In the financial year 2020-21, India imported $ 65 billion, or about Rs 4.81 lakh crore, from China.
Of this, $39.5 billion was imported in the sectors of textiles, agriculture, electronics products, pharma, and chemicals, which account for about 60 percent of the total imports.
The government has announced Production Based Incentive (PLI) for all these sectors so that domestic manufacturing can be encouraged in these sectors and India can also become an exporter in these sectors.
$8 billion increase in GDP is possible.
According to the report of SBI Ecowrap, with the help of the PLI scheme, India can reduce imports from China by up to 20 percent. With this, India can add eight billion dollars to its GDP.
SBI believes that later imports from China can be reduced by up to 50 percent, due to which India’s GDP can increase by $ 20 billion.
In the last one and a half years, the government has announced a PLI scheme in 14 different sectors.
Domestic capacity will have to be expanded.
According to the Eco wrap report, in the current financial year 2021-22, items like personal computers, telephone equipment, electronics circuits, solar cells, urea, lithium-ion were imported in huge quantities from China.
In order to reduce the import of these items from China, India will have to import these items from other countries till it establishes the manufacturing capacity of these items domestically.
At the same time, domestic capacity will have to be expanded to reduce imports from China in sectors like chemicals, footwear, and textiles.
According to the Eco wrap report, India has to increase exports of goods to be a part of the global value chain and for this, the right infrastructure is needed.
India’s economy will grow at the fastest rate among the major countries.
The Indian economy will register the fastest growth among the major countries due to various initiatives taken by the government in the Union Budget 2022-23.
This has been said in the monthly economic review report of the Finance Ministry.
According to the report, the agriculture sector is also witnessing steady growth due to remunerative minimum support price and income transfer through the Pradhan Mantri Kisan Yojana.
The manufacturing and construction sectors will be the main drivers of growth due to PLI schemes and public capital investment in infrastructure, the report said.
