PLI scheme only kickstarter not permanent: Piyush Goyal

Commerce and industry minister Piyush Goyal Thursday said the production-linked incentive (PLI) scheme for drone components is a kickstarter for the sector to progress and should not be considered as a permanent subsidy from the government. At a PHD Chamber of Commerce and Industry event, he said the government doesn’t intend to make the industry dependent on it.

“The PLI scheme is not an end to itself. Its purpose is to kickstart.. it is not a permanent subsidy. There’s no intention to make you dependent on the government permanently,” Goyal said.

“Don’t go down the path of depending on government’s crutches,” he said.

He also said promises such as “khata khat” weaken the country’s confidence and self-reliance. Leader of Opposition Rahul Gandhi had made a poll-promise of depositing Rs 1 lakh in the bank account of one woman from every poor household in the country.

India has put in place PLI schemes for 14 sectors, including electronics, drones, white goods, textiles and pharma with an outlay of Rs 1.97 lakh crore. These were announced during the Covid pandemic in 2020 to boost domestic manufacturing and exports.

“You suggested that government should adopt it. However, I have a different view that all ministries will work along with you on ease of doing business, providing you with facilities to manufacture, banking facilities, startup financing,” Goyal told industry.

The minister said that 18 IPOs have happened in the first six months and the stock market is growing very fast.

“The stock market has grown four times in the 10 years of our government. India is progressing fast on the virtuous cycle of growth and the stock market is growing because of that progress,” he said.

The entire world wants to engage with India, want to ink free trade agreements and bilateral investment treaties, increase trade and also invest in India, Goyal said.