Products Linked Investment (PLI) Scheme of the Govt - Partners Speak

Commenting on this scheme, Rajesh Thiyagarajan of VB Systems said, "Major players like Samsung, Song, Dell have established assembly plants in India, whereas manufacturing or production happens in Taiwan and China. The reason behind this is that in those countries there is infrastructure and the manufacturing cost is low. An assembly unit India is to claim the tax exemption, and we cannot establish assembling in India as Make In India. The PLI scheme would not help in reflecting productions in India right now for the global brands. They would opt to build an infrastructure here only if global exporting opportunities can be possible."

"Such a scheme for an Indian company would not hold good as they lack in the customer attraction these established global brands have."

-– Rajesh Thiyagarajan, VB Systems

Pradeep Menon of Zacco Cybersecurity says, "The PLI scheme has rightfully targeted the focus to become a self-reliant nation. The outcomes in various sectors so far have been highly encouraging. I extremely encourage this to be extended to new sectors as well. By incentivising large organisation to set up their plants in India or by having Indian companies set up establishments, it generates enormous employment opportunities, creates a local supplier ecosystem, improves country's integration to global supply chain in these sectors, brings in foreign capital flows and give a huge impetus to growth in these sectors which were hitherto not focused. The PLI scheme also needs to take into consideration that appropriate environmental protection measures are strictly adhered to and does not deplete the country of already lowering water table levels."

"The current incentive scheme currently apportions the allocated funds of under-performing companies to over performing companies; however, this needs to be looked into being fairly distributed. Increase in employment, leap frog in skills in technology and know how, enhanced integration with global supply chains, import of best practices followed by these large companies, these are few of expectations from the PLI scheme."

-- Pradeep Menon, Zacco Cyber Security

"For the newer products we feel it's better to start with SKD and then move to CKD, the government has to give enough time to the industry, with various tax benefits in the SKD & CKD manufacturing. This time can be utilised by the industry to build up the supply chain ecosystem, which is essential to take full use of PLI schemes."

--Rajesh Doshi, Co-founder & Director, Zebronics India 

Rajesh Doshi of Zebronics India says, "PLI or production linked schemes are great initiatives by the Government of India. PLI schemes are essential in bringing production in our country and strengthen the Self-Reliant India plan. Although the PLI scheme works well for products, whose supply chain is mature and present in the country. We are working towards bringing manufacturing to the country. We are very hopeful that government will provide benefits to smaller manufacturers too, who are associated with this industry to help develop a healthy ecosystem and a strong supply chain."

Seeing the comments of the partners and SMBs, it appears that the government needs to take their viewpoints and make manufacturing in India more easier than what it is now. It has to become cheaper than that in China to become viable for the world. Further, there should be a clear plan of where the financial help is going and whether the manufacturers are able to sell and export their products. Although exports are under NIL GST, it doesn't make sense to have the entire GST regime mandatory if at the end of it they have to file NIL GST. Exports should be out of the GST regime, so that the exporters can just send their products abroad with minimum hassles.

--Dr Archana Verma

--Ayshwariya Lakshmi