In the interim budget for 2023-24, India may extend the Production-Linked Incentive (PLI) plan to clothes, jewelry, and handicrafts. The budget would prioritize rural income development and Make in India infrastructure. Capex will reach a record Rs 10 lakh crore tBudget 2024: Govt to focus on Make in India initiative to boost manufacturingo boost economic growth.
In the next budget, the government may expand the Production-Linked Incentive (PLI) scheme to boost manufacturing and jobs. Finance Minister Nirmala Sitharaman will propose the 2023–24 interim budget on February 1. The interim budget will cover clothes, jewelry, and handicrafts. The government’s 2021 Production-Linked Incentive (PLI) initiative covers 14 sectors.
The government will likely encourage rural household income growth to enhance the rural economy’s disposable income. Nidhi Aggarwal, founder of SpaceMantra, believes PLI initiatives would continue to create jobs.
Focus will likely concentrate on Make in India’s momentum. When FM Nirmala Sitharaman presents the budget, GST rationalization, credit flow ease, and capex incentives will be emphasized.
The budget would boost infrastructure to allow Make in India logistics.
Given its multiplier effect on the economy, the upcoming budget should dedicate a lot to capital investment.
Kulsum’s Kaya Kalp CEO Zameer Malik expects the government to prioritize capital investment, particularly infrastructure, to boost economic growth.
“While export incentives are pending, filling road, rail, and regulation deficiencies will boost industry competitiveness. Malik stated tax stability stimulates production planning cycles while consumption rises “.
In the current fiscal year, the government allocated a record Rs 10 lakh crore for capex. According to PTI, allocation increased gradually from Rs 4.39 lakh crore in 2020–21 to Rs 5.54 lakh crore in 2021–22 to Rs 7.5 lakh crore in 2022–23.
Gurmit Singh Arora, president of the Indian Plumbing Association, said the budget provides income assistance tailwinds for domestic consumption but not export incentivisation.
Growing local demand provides reliable insulation despite global difficulties. Despite cyclical concerns, incremental manufacturing keeps momentum “Big policy catalysts would have delivered adrenaline doses.
India has gained manufacturing interest under Modi in recent years. The government has helped encourage private investment by establishing a business-friendly climate. Private investment has increased across industries as the economy has grown.
Conclusion
In the 2023-24 interim budget, the Indian government plans to expand the Production-Linked Incentive (PLI) scheme to boost industry and jobs. Garments, jewelry, and handicrafts will be included in the budget, which will focus on rural household income development. For economic growth, the government should emphasize capital spending, especially infrastructure. The budget allotted a record Rs 10 lakh crore for capex, with increases in subsequent years. By fostering a business-friendly atmosphere and encouraging private investment, the Modi government has attracted manufacturing interest.
