THE Government should consider launching a ‘PLI Plus’ scheme with focus on development of new products, industrial designs and enhancing productivity with a view to boost domestic manufacturing, economic think tank GTRI said on Sunday. A production-linked incentives scheme (PLI) is under implementation by the Government with a budgetary outlay of about Rs 2 lakh crore for 14 sectors such as white goods, mobile, telecommunication and auto components. The Global Trade Research Initiative (GTRI) report said that creating sustainable and competitive manufacturing is imperative to increase the share of manufacturing in GDP to 25 per cent by 2030, up from 15 per cent at present.

“This will require shifting focus to one step back. From quick manufacturing outcomes to R&D, reverse engineering, and deep work. This can be done under the Make in India framework with the launch of eight PLI Plus initiatives. These initiatives will strengthen the foundation of Indian manufacturing and aspire to bring the expertise level at par with developed countries like Germany, the US, Japan etc,” GTRI co-founder Ajay Srivastava said. Under the initiative, he called for focus on laying the foundation for new product development; enhancing productivity of entire product sectors; supporting industrial design, development and manufacturing to cut imports; and boost ease of doing business measures. For the initiative, he suggested the government use Rs 1 lakh crore from the existing funds.

Creation of global quality basic science research set up; inviting more Suzuki, GE and Apple type of firms in india; developing end-to-end product ecosystems; supporting manufacturing of products made by small and medium-size firms; and localising production of fertilizer and plastics will help India strengthen foundation of its manufacturing and aspire to bring the expertise level at par with developed countries, it added. “India must develop expertise in basic sciences, chemistry, metals, electronics, etc. These require long-term and sustained investment and collaborations with institutions across the world,” it said.