Union Cabinet approves additional spending of Rs 2-lakh crore to boost domestic manufacturing

The Union Cabinet on Wednesday approved additional spending of Rs 2 lakh crore to boost manufacturing in 10 designated sectors including electronics, automobile, pharmaceuticals and textiles.

The money will be spent on production-linked incentives to boost domestic manufacturing and make Indian manufacturers globally competitive.

Briefing reporters after a meeting of the Cabinet, Information and Broadcasting Minister Prakash Javadekar said the production-linked incentives will be offered for sectors such as white goods manufacturing, pharmaceutical, specialised steel, auto, telecom, textile, food products, solar photovoltaic and cell battery.

The aim of the production-linked incentive scheme is also to attract investment in the areas of core competency and cutting-edge technology; ensure efficiencies; create economies of scale; enhance exports and make India an integral part of the global supply chain, a government statement said.