Big reforms announced by the Indian government in auto, telecom sector
A cabinet chaired by Prime Minister Modi on Tuesday made some big changes in the Telecom and auto sector among other structural reforms. The cabinet approved a lot of other reforms in other industries as well aimed at generating employment in the country.
One of the major changes in the announced list was the government approving a prediction-link incentive (PLI) scheme for automotive industry, auto-component industry and drone industry. This decision has reportedly been taken in order to enhance the manufacturing capabilities of the country.
For the PLI scheme, the government has allocated Rs 26,058 crore which will be used to promote it in the coming five years. Drone sector has been allocated Rs 120 crore while Rs 25,938 crore was announced for the auto sector.
The Union Cabinet minister for Telecom Ashwani Vaishnav also stressed that these reforms are planned in such a way that it would revamp the entire framework of the telecom sector and make it more available to the people. As per the minister, the new changes will bring in investments close to Rs 4,75,000 crore over the course of next five years.
Vaishnav also added, “The PLI scheme for drones will bring fresh investments of over Rs 5,000 crore in three years and incremental production of over Rs 1,500 crore.” The centre also asserted that these reforms are cleaner and more in sync with the environment. It will promote usage of electric vehicles and hydrogen fuel cell vehicles in the country, stressed the minister further.
PLI is one of the most highlighted sectors to generate employment in the country. It looks at employing over 7.6 lakh people over the next five years and it will also be creating investment opportunities of Rs 42,500 crore in the automobile sector.
Thakur asserted that the automobile industry is one of the leading sectors to generate employment. It contributes nearly 35 percent to the GDP and that makes it a major sector in the economy. “If we speak of the global automotive trade, then we need to increase India’s participation,” Thakur stressed further.