Is Modi’s Magic Fading? Budget 2024 Answers if Make-in-India Still Has Zing

Indian 2024 Budget

India’s ambitious dream of becoming a global manufacturing powerhouse rests heavily on the shoulders of the Production-Linked Incentive (PLI) scheme launched in 2020. This audacious initiative aims to propel domestic production, curb imports, and unleash India’s export potential. But with the 2024 interim budget looming, questions swirl around its effectiveness. Can the PLI scheme truly transform India’s industrial landscape?

Critics, like former RBI Governor Raghuram Rajan, raise valid concerns. They point to potential distortions in resource allocation and the possibility of creating “rent-seeking” behavior among select companies. Additionally, concerns linger about the scheme’s long-term sustainability and the potential for bureaucratic hurdles.

However, the numbers tell a different story. By November 2023, the Commerce and Industry Ministry reported over Rs 95,000 crore in investments under the PLI scheme, with 746 applications approved across 14 sectors, ranging from electronics and pharmaceuticals to textiles and drones. This translates to a significant surge in domestic production and job creation, chipping away at India’s dependence on imports.

The proposed industrial policy, expected to be unveiled in the 2024 budget, aims to further fuel this growth. It seeks to identify key areas where India can leverage cost advantages over China, a formidable competitor in the global market. By streamlining processes, facilitating land acquisition, and fostering a skilled workforce, the policy promises to create a fertile environment for manufacturing to flourish.

The upcoming budget will be a pivotal moment for India’s manufacturing aspirations. The allocation of resources to the PLI scheme and the details of the proposed industrial policy will determine the future trajectory of this ambitious endeavor.

Looking ahead, the success of the PLI scheme hinges on several factors. Effective monitoring and evaluation are crucial to ensure transparency and prevent misuse of resources. Additionally, fostering a culture of innovation and technological advancement will be key to sustaining long-term competitiveness.

While challenges remain, the early signs are promising. The PLI scheme has demonstrably attracted investments, boosted production, and created jobs. With continued refinement and strategic implementation, it holds the potential to propel India towards its manufacturing aspirations. The 2024 budget will be a critical test, and the world will be watching closely to see if India takes its rightful place as a global manufacturing giant.