Início Fashion SBI report calls for separate PLI scheme for Indian MSMEs

SBI report calls for separate PLI scheme for Indian MSMEs


As micro, small and medium enterprises (MSMEs) contribute around 45 per cent of India’s exports and nearly 40 per cent of manufacturing gross value added (GVA), the State Bank of India (SBI) has suggested the government to introduce a separate production-linked incentive (PLI) scheme for MSMEs to further boost the sector’s contribution and generate more jobs.

Though MSMEs play a pivotal role in India’s economy, contributing significantly to economic development, growth, innovation and employment, four years after the scheme was launched, the large-scale manufacturing sector has emerged as its major beneficiary, the bank’s research wing, in its ‘Prelude to Union Budget 2024-25’ report, noted.

As MSMEs contribute around 45 per cent of India’s exports and nearly 40 per cent of manufacturing gross value added, the State Bank of India has suggested introduction of a separate production-linked incentive (PLI) scheme for them.
Sectors like textile, garments, handicraft and leather can be considered for separate PLIs for MSMEs, it noted in a report.

PLI scheme has been a game-changer towards augmenting incremental manufacturing capacity, drawing fresh investments to the tune of nearly ₹1 lakh crore (~$12 billion), with incremental sales of ₹8.61 lakh crore (with exports share being close to 40 per cent) and facilitating employment generation of close to 8.78 lakh.

Till January this year, 746 PLI applications had been approved in 14 sectors with an expected investment of over ₹3 lakh crore (~$35.93 billion). Out of those 746 applications, 176, or around 24 per cent, were MSMEs, the report said.

Sectors like textile, garments, handicraft and leather can be considered for separate PLIs for MSMEs, it added.

Fibre2Fashion News Desk (DS)




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