Modi cabinet decides to boost manufacturing in India

The Union Cabinet on Saturday approved a production-based incentive of Rs 40,995 crore for electronics manufacturing companies. Union Communications Minister Ravi Shankar Prasad said on Saturday that the government will provide an incentive of Rs 40,995 crore to promote the manufacturing of electronic products. He said two long-term policy decisions have been taken to make India a hub of electronics manufacturing in the field of new directions and medical electronics. The Cabinet has approved production-based incentives for electronics manufacturing companies. He said the government will give Rs 40,995 crore in the next five years under production-based incentives.

The revenue target of Rs 10 lakh crore:

Prasad said the incentive would be linked to increasing sales of companies and capital investment. He said the government is expecting to achieve manufacturing revenue of Rs 10 lakh crore by 2025 on the strength of these schemes. Prasad said the scheme will provide a 25 percent incentive on capital investment.

In addition, the Union Cabinet led by the Prime Minister also approved the inclusion of Ayush Health and Wellness Centre, part of Ayushman Bharat, in the National Ayush Mission (NAM). The government will invest a total of Rs 3,400 crore to set up 12,500 wellness centers across the country. Out of this, 10,000 centers will come within the Ministry of AYUSH and the remaining 2,500 will be sub-centers within the Ministry of Health and Family Welfare.

3,420 crore for medical devices:

In addition, the government has approved a Production Based Incentive (PLI) scheme to promote the manufacturing of medical devices in the country, which is estimated to cost around Rs 3,420 crore. According to an official statement, the Union Cabinet chaired by Prime Minister Narendra Modi has approved a Rs 400 crore scheme for common infrastructure in four medical device parks.

The statement said that these schemes will be invested during the next five years from 2020-21 to 2024-25. The union cabinet has approved a Rs 400 crore plan and a production-based incentive scheme to finance common infrastructure in four medical device parks, the statement said.