Budget 2024 Expectations: According to Deloitte, in the next interim Budget, the government may expand the PLI scheme’s coverage to include industries including apparel, jewelry, and handicrafts in an effort to boost the manufacturing sector and create jobs.
Increasing rural income is one strategy to combat inflation and slack in consumer demand, according to Deloitte India Partner Rajat Wahi.
There are now 14 industries covered by the PLI program, however many of them do not provide a significant amount of jobs. Since the leather, apparel, jewelry, and handicraft industries are the ones that provide the most jobs, many of these industries need the PLI program to be implemented. That would benefit both urban and lower-class people, Wahi told PTI.
In its research on budget expectations, Deloitte said that policies to promote sustained income development among rural families are anticipated from the government, which would increase the disposable income of the rural economy.
“Increasing funding for the construction of rural infrastructure or offering incentives to enhance cash flow might be two approaches… More manufacturing may become necessary if PLI programs are expanded to include industries like services and chemicals, according to Deloitte.
With a budget of Rs 1.97 lakh crore, the PLI scheme was introduced in 2021 for 14 industries, including telecommunication, white goods, textiles, medical device manufacturing, cars, specialty steel, food products, high-efficiency solar PV modules, advanced chemistry cell batteries, drones, and pharmaceuticals.
Up till November 2023, over Rs 1.03 lakh crore had been invested in PLI programs; this resulted in Rs 8.61 lakh crore in production and sales as well as the creation of over 6.78 lakh jobs.
In 14 industries, 746 applications have been accepted with an estimated investment of more over Rs 3 lakh crore.
The programs aim to make Indian businesses and manufacturers competitive on a worldwide scale, guarantee efficiency and provide economies of size and scale to the manufacturing sector, and draw investments in critical industries and cutting-edge technology.
According to Deloitte, PLI programs are also necessary for space tech firms in order to support national capacity development and increase local manufacturing. This would provide financial incentives to firms depending on their output, which will assist encourage local manufacturing and attract investment.
Date of Budget 2024
Finance Minister Nirmala Sitharaman is expected to announce the interim Budget 2023–24 on February 1.