Engineering Export Promotion Council (EEPC) of India Chairman, Mahesh Desai has sought extension of the production-linked incentive (PLI) scheme to Micro, Small and Medium Enterprises (MSMEs) on an incremental basis given the fact that the sector contributes 45 percent to the manufacturing output and 40 percent to exports.
Desai has stated that MSMEs in the engineering sector play a vital role with strong backward and forward linkages and with significant value addition and employment generation. Therefore, he said it is important to provide the benefits to PLI scheme to MSMEs on an incremental basis so that they can move on production value chains to compete in world markets.
He further said overall the new scheme approved by the Cabinet will give an impetus to the manufacturing sector by strengthening production capabilities of manufacturers, thereby making domestic industry competitive to participate in global value chains. He noted that engineering exporters account for over a quarter of the country's total merchandise exports.