Disruption in the global supply chain has opened up opportunities for large-scale manufacturing in India, aided by significant policy initiatives such as production-linked-incentive (PLI) schemes and low corporate tax rates for new manufacturing, among others. Structural issues like cost of land and electricity, lack of adequate infrastructure and shortage of skilled manpower could play the spoilsport if not addressed on time, says industry.
The government has unveiled a $27 billion worth of PLI scheme for 13 sectors to help integrate Indian companies into the global value chains and tap into the opportunity. The PM Gati Shakti – National Master Plan (NMP) which brings together 16 ministries to enable integrated planning and coordinated implementation of infrastructural connectivity, is expected to lower logistics costs significantly. The corporate tax rate for new manufacturing has been reduced to 15%.
