Recommendations by the Parliamentary Committee
The parliamentary committee has proposed various measures to enhance India's manufacturing sector and international trade.
Enhancing the Production-Linked Incentive (PLI) Scheme
- Extend and enhance the PLI scheme to cover labour-intensive sectors such as chemicals, leather, apparel, and handicrafts.
- The PLI scheme currently covers 14 sectors, including:
- Mobile Phones, Drones, White Goods
- Telecommunications, Textiles, Automobiles
- Specialty Steel, Pharmaceutical Drugs
- Current financial outlay for the PLI scheme is ₹1.97 trillion.
- Recommended expansion to additional sectors like:
- Defence Manufacturing
- Aerospace
- Ship Containers
- Emphasized the need for a robust framework for monitoring and reporting the scheme's impact.
Concerns on National E-Commerce Policy
- Highlighted the absence of a clear timeline for launching the National E-Commerce Policy.
- Recommended expedited finalisation and implementation by the DPIIT.
Focus on Exports and Interest Equalisation Scheme (IES)
- Stressed the importance of operationalising the Interest Equalisation Scheme (IES).
- IES provides financial support by compensating for high export credit costs.
- IES was part of the ₹2,250 crore Export Promotion Mission but is not yet operational.
- Recommendations include:
- Continuation or integration of IES components into the new mission.
- Commerce department should reassess funding and seek additional allocations if needed.
Trade Agreements and Balance of Trade
- Proactive measures recommended to conclude ongoing FTA negotiations with:
- US, UK, European Union, Oman
- Comprehensive FTA discussions with Australia
- Emphasized targeting countries with trade imbalances, such as:
- Australia, Indonesia, Japan
- Korea, Malaysia, Philippines
- Singapore, Vietnam
- Focus on specific products/services to bridge the balance of trade gap.
