The Union Minister of Commerce & Industry, Piyush Goyal on Thursday said, the Production-linked incentive scheme is just to kickstart the sector, not a permanent subsidy and industry should not be dependent on the government.
While speaking at the International Innovation Conclave organised by the PHD Chamber of Commerce & Industry (PHDCCI) and AVPL International, Goyal said, “The technological progress in the drone industry will help combat erratic weather patterns and assist farmers in getting higher quality and higher quantity yields. Drones can contribute to the cooperative sector, Self-help Groups (SHGs) and to farmers' producer organisations (FPOs) as a shared facility with the help of agri-infra funds in delivering fertilisers and reducing wastage and expenses of the farmers.”
He added, that the Production-Linked Incentive (PLI) Scheme for drones and drone components is a Kickstarter for the sector to progress and should not be considered as a permanent subsidy scheme from the government.
PLI scheme was launched in 2020 to scale up domestic manufacturing capability accompanied by higher import substitution and employment generation. The scheme initially targeted three sectors but later it was extended to fourteen sectors which include mobile manufacturing, manufacturing of medical devices, automobiles and auto components, pharmaceuticals, drugs, speciality steel, telecom & networking products, electronic products, white goods (ACs and LEDs), food products, textile products, solar PV modules, advanced chemistry cell (ACC) battery, and drones and drone components.
On the government’s initiative for the promotion of the drone industry, he said, “Government is ready to promote the drone industry that has seen rapid growth in the last three years. The development of technology and growth in the drone industry on the strength of innovation. The development of drone ecosystems and deploying them in villages across the nation aligns with the PM’s ‘NAMO Drone Didi’ initiative that will help empower the women in the agriculture sector.”
The Minister said that eighteen Initial Public Offerings (IPOs) have already been offered in the first half of 2024 and seventeen IPOs were offered in 2023. The country has seen windfall investments from foreign investors and there has been a massive push for infrastructure.
He further stated that easing of regulations and compliance burden on startups along with enabling Ease of Doing Business (EoDB) have been the primary focus of PM Modi’s government.
Goyal also stated that infrastructure growth has a multiplier effect on the economy that leads to demand for goods and services and increases consumption in the country. He added that PM’s infra push has enabled the growth of industry and generation of employment that has put the nation on a virtuous cycle of growth.
