Ministry of Heavy Industries

Government takes Series of Measures to Incentivize theManufacturing Sector

Posted On: 02 AUG 2021 5:33PM by PIB Delhi

Major steps taken by Government to incentivize the manufacturing sector are as follows:


  • Production Linked Incentive scheme: Keeping in view India’s vision of becoming Aatamnirbhar and enhancing India’s Manufacturing capabilities and exports, an outlay of Rs 1.97 lakh crore has been announced in Union Budget 2021-22 for production linked incentive scheme(PLI schemes) for 13 key sectors for 5 years starting from fiscal year 2021-22.On 12th May, 2021, MHI has approved a production linked incentive scheme (PLI scheme) for Advance Chemistry Cell(ACC) in the country.  The total outlay of the scheme is Rs. 18,100 Crore for five years.  The scheme envisages to establish a competitive ACC battery manufacturing set up in the country (50 GWh).  Additionally 5 GWh of niche ACC technologies is also covered under the scheme.  The scheme proposes a production linked subsidy based on applicable subsidy per KWh and percentage of value addition achieved on actual sales made by the manufacturers who set up production units.
  • Ease of doing business and compliance burden: To translate the Aatamnirbhar Bharat vision into a reality, Government is working to reduce compliance burden on businesses and citizens. Initiatives taken for compliance reduction are focused on simplifying and digitizing various processes, reduction in documents in documents to be submitted along with applications, reduction in frequency of inspections, third party inspections, auto renewals, decrease in frequency of return fillings and digital maintenance of registers/records.
  • Startup India: A Fund of Funds ForStartup Schemes (FFS) with corpus of Rs 10,000 crores to meet the funding needs of startups. Start-up India Seed Fund scheme approved with an outlay of Rs 945 Crore. The scheme shall provide financial assistance to startups for proof of concept, market entry, commercialization etc. It will support an estimated 3600 entrepreneurs through 300 incubators in the next 4 years.
  • Foreign Direct Investment(FDI) : As per the extant FDI policy, 100% FDI is permitted in manufacturing sector under automatic route.
  • Public Procurement: Public procurement is a sizeable share of Indian economy. To promote domestic investment and usage of made in India products by the government, the public procurement(Preference to Make in India ) order has been revised on 16.09.2020

Industrial Corridor: The National Corridor Program(NICP) has been conceived to promote world class manufacturing facilities and develop futuristic industrial cities in India. Eleven(11) industrial corridors have been identifies with 32 nodes/projects proposed to be developed in 4 phases until 2024-25.


In manufacturing, the details of the workers engaged in informal and formal sector enterprises by industry groups in 2017-18 are as below:


Enterprise type





Proprietary & Partnership








Source: MSDE Skill Assessment and Anticipation Study (Manufacturing Sector)


The Skill councils under the Ministry of Heavy Industry have imparted training to the following workforce in the manufacturing sector:


1. Capital Goods Skill Council has developed 56 QPs for level 5 & below, trained 155927 candidates, affiliated 454 training centers and 945 trainers since 2014.

2. Infrastructure Equipment Skill Council has developed 39 QPs for level 7 & below for construction, mining and earth moving machinery, trained 49,925 candidates, affiliated 64 training centers and 808 trainers since 2015.


3. Instrumentation Automation Surveillance & Communication Sector Skill Council has developed 21 QPs for level 5 and below, trained 1,32,000 candidates, affiliated 140 training centers and 235 trainers since 2017.   


4. Automotive Skill Development Council oversees the regulation of skill development initiatives within the Automotive Industry. It has 194 QPs up to level 8, trained 8.34 lakh, affiliated 1170 training centers and 1653 trainers trained since inception. (as on 26.07.2021)


Further, 9822 trainees have been imparted training through Samarth Udyog Centers developed under Phase I of the scheme for enhancing competitiveness in the capital good for facilitating  and creating eco system for propagation of Industry 4.0.


This information was given  in a written reply by the Minister of State for Heavy Industries Shri Krishan Pal Gurjar in Rajya Sabha today .



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