New Delhi, Feb 1 (PTI) The commerce and industry ministry has recommended an outlay of Rs 3,489 crore for the Production Linked Incentive (PLI) scheme for toys to boost domestic manufacturing of the sector, according to the Budget papers.
It has also suggested an outlay of Rs 2,600 crore for the PLI scheme for the footwear and leather sector.
However, as these two schemes are yet to be cleared by the Union Cabinet, the interim Budget has made a token provision of Rs 1 lakh towards these schemes for 2024-25.
“The PLI scheme for toys is recommended with an outlay of Rs 3,489 crore with a scheme period from 2024-25 to 2031-32,” the expenditure paper said.
It added that an entity availing of benefits under any other PLI scheme of the government will not be eligible for the same product.
“The scheme is not yet approved by the cabinet. Hence, the token provision has only been made for 2024-25,” it said.
It added that the scheme for leather and footwear manufacturers will be for 2023-24 to 2031-32.
The benefits availed by a manufacturer under the existing IFLDP (Indian Footwear and Leather Development Programme) scheme shall be adjusted while calculating the incentives for the same unit under this PLI scheme, it said.
“The scheme is not yet approved by the cabinet. Hence, the token provision has only been made for 2024-25,” it said.
The industry of both sectors were demanding the scheme.
The government has taken several steps to restrict import of sub-standard and unsafe toys and to promote domestic toy industry.
As a result of various steps, the volume of import of toys into the Indian market has shown a consistently decreasing trend.
The imports has decreased from USD 332.55 million in 2014-15 to USD 109.72 million in 2021-22.
On the other hand, export of toys have increased from USD 96.17 million in 2014-15 to USD 326.63 million in 2021-22.
The government in 2021 announced PLI schemes for 14 sectors such as telecommunication, white goods, textiles, manufacturing of medical devices, automobiles, speciality steel, food products, high-efficiency solar PV modules, advanced chemistry cell battery, drones, and pharma, with an outlay of Rs 1.97 lakh crore.
The schemes aim to attract investments in key sectors and cutting-edge technology; ensure efficiency, bring economies of size and scale in the manufacturing sector and make Indian companies and manufacturers globally competitive. PTI RR CS TRB
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