The Cabinet recently approved introduction of a production-linked incentive (PLI) program to attract manufacturing in ten key sectors to India. The PLI program provides incentives to companies against their incremental sales, capital expenditure or investments after the program is notified. This targeted PLI program was notified in April and within six months, it evinced enough interest, netting several big names, with an expectation of INR 10,50,000 crore incremental production. Indonesia eliminated tariffs only on 50% of its market for India while Vietnam on 69% of the trade market. Thankfully better sense prevailed, for without that FTA, Indian trade deficit with China peaked at $73-bilion in 2016-17.

Source: Mint November 16, 2020 02:37 UTC