PLI Scheme: If the government adopts these methods, then dependence on China will decrease, GDP may increase by $ 20 billion

PLI Scheme: If the government adopts these methods, then dependence on China will decrease, GDP may increase by $ 20 billion

[ad_1]

New Delhi. The Government of India is making various efforts to reduce import dependence on other countries for other commodities including semiconductors, pharma and agricultural products. Taking a big step in this direction, the government had introduced the Production Based Incentive (PLI) scheme last year. Its purpose is to encourage foreign and Indian companies to manufacture in order to reduce import dependence and increase domestic production.

SBI Research has said in a report that if India takes advantage of the PLI scheme and promotes domestic manufacturing, it will help in reducing import dependence from China. Under the PLI scheme, the government can reduce its dependence on imports from China by 50 percent by adopting various methods.

read this also- LIC IPO : RBI’s condition increased LIC’s troubles, Financial health may deteriorate, Keep these things in mind before buying IPO

India has been successful in reducing trade deficit
It has been claimed in the report that reducing import dependence will also accelerate the country’s GDP and it can increase by up to $ 20 billion. It further said that India was successful in reducing its trade deficit with China in 2020-21, but the share of China in India’s total goods imports is increasing at the rate of 16.5 percent.

read this also- LIC IPO : Keep these risks in mind before investing in the biggest IPO, otherwise there will be big loss, Know full details

PLI will increase production in these areas
According to the report, in 2020-21, about $ 39.5 billion in imports of $ 65 billion from China was of commodities and products. India has announced PLI schemes to increase production in the textile, agricultural products, electronics products, pharma and chemical sectors. If we are able to reduce our imports from China by even 20 percent due to the PLI schemes, then we will increase our GDP by $8 billion.

$68 billion in imports in the first three quarters
India imported $68 billion worth of products from China in the first three quarters of the current fiscal. According to the report of the Ministry of Commerce, a spurt in exports from India to China was registered last year amid the Corona crisis. Last year, India’s exports to China increased by 34 percent to $22.9 billion. Before Corona, this export was $ 17.1 billion in 2019.

Tags:, Import-Export, Scheme

[ad_2]

Read Article in हिन्दी

Leave a Comment

Your email address will not be published.