PM promises to reduce 6,000 compliance requirements, improve EoDB & Multi-Modal infrastructure to trim logistics costs

NEW DELHI: The Prime Minister Narendra Modi recently said the 13 production-linked incentive (PLI) schemes rolled out in the aftermath of the Covid-19 pandemic could lead to an incremental manufacturing output of $520 billion and double the workforce in relevant sectors over the next five years.

Addressing industry leaders from the beneficiary-sectors through a webinar, the Prime Minister promised to reduce the burden of India Inc drastically by doing away with as many as 6,000 compliance requirements, further improve ease of doing business and create multi-modal infrastructure to trim logistics costs.

Industry executives from sectors ranging from automobiles, electronics, telecom, pharmaceuticals, white goods and textiles who attended the webinar, urged the PM and other government functionaries, to suitably empower the empowered group of secretaries which is overseeing the schemes so that a flexible approach could be adopted in cases where improvisations may be required from time to time. For instance, in telecom equipment production, the caps on the incentives could be reviewed as production accelerates. If a mid-course correction requires a Cabinet approval, it could lead to costly delays, they pointed out.

The Prime Minister highlighted the need for a giant leap in the speed and scale of manufacturing, as this would boost employment in the country. The share of manufacturing in the country’s GDP has remained stagnant at about 16-17% for decades now. The latest target is to raise it to 25% of GDP by 2025.