Budget 2023: Government can increase allocation for these schemes, know what is the plan?

Under active PLI schemes like Electronic Manufacturing and IT hardware, allocation can be increased for sectors which have seen more impact at the ground level.

Budget 2023-24: Finance Minister Nirmala Sitharaman is going to present her last full budget on 1 February. A lot of expectations of the common people are attached to this budget. In this budget, the allocation for the ongoing Production-Linked Incentive (PLI) schemes in India is expected to increase significantly. Some new sectors may also be included in the program which seeks to restart manufacturing in India and boost exports, among other measures to boost investment.

Let the common people know that under active PLI schemes like electronic manufacturing and IT hardware, the allocation can be increased for those sectors which have seen more impact at the ground level. Finance Minister Nirmala Sitharaman had announced Rs 1.97 lakh crore for PLI schemes in the FY22 budget which now covers 14 key sectors.

According to sources, the total allocation under PLI may be increased. This is such a scheme which is visible at the ground level. Allocation for schemes under PLI schemes may increase by 20-30% in the upcoming budget.

Money will not affect much

India is keen to send a strong signal to global manufacturers eyeing supply chain diversification under its China+1 strategy about its intention to offer an attractive factory eco system. The budget may also extend the lower corporate tax rate of 15% available for new manufacturing investments for a few more years. Measures to encourage private investment will be one of the areas of focus.

PLI schemes show good interest

Expansion of PLI is one such measure which is being actively considered. This will be complemented by easing compliance in several areas. Experts say that the government should focus on the success of the programme. Vikas Vasal, National Managing Partner, Tax, Grant Thornton India, said that in a short span of time, PLI schemes have shown good interest from businesses and investors. Explain that apart from increasing the outlay in some existing sectors, there is a need to increase the coverage by adding more sectors to promote manufacturing and exports. The extra money will not have a big impact on the finances.