Union Minister of Commerce and Industry, Consumer Affairs, Food & Public Distribution and Textiles, Shri Piyush Goyal encouraged industry’s constructive feedback and collaborative engagement to shape the policies, procedures and effectiveness of the Production Linked Incentive (PLI) scheme. While delivering a keynote address at the ‘PLI Perspectives: A Stakeholder Meeting’ organized by the Department for Promotion of Industry & Internal Trade (DPIIT), Ministry of Commerce & Industry yesterday at Bharat Mandapam, New Delhi, he applauded the efforts of all the PLI beneficiaries for driving the vision of the Prime Minister, Shri Narendra Modi, to make India a global hub for manufacturing. 

 

Shri Goyal urged the industry champions to intensify their focus on enhancing competitiveness within their respective sectors, fostering a business environment that stimulates innovation, efficiency, and adaptability. He also emphasized on the importance of the industry's concentration on prioritizing production of high-quality goods which is aligned with the broader objective of the PLI Scheme, ensuring that the benefits extend to both businesses and consumers. 

 

Shri Goyal further highlighted the imperative of cooperative collaboration where beneficiary companies were urged to work hand-in-hand with the government and fellow stakeholders, creating a collaborative ecosystem for sustainable growth. The Minister further added that the Government Officials of the implementing Ministry/ Department must hold regular consultation and roundtables with their respective PLI beneficiary. 

 

Overall achievement of PLI Schemes was also discussed during the meeting. Actual investment of Rs. 1.07 lakh crore have been realized (till December’23) which has resulted in production/ sales worth Rs. 8.70 lakh crore and employment generation of around 7 lakhs (direct & indirect). Exports have exceeded Rs. 3.40 lakh crore, with substantial contribution from key sectors such as electronics, pharmaceuticals & food processing. Incentive amount of around Rs. 4,415 crore disbursed under PLI Scheme for 8 sectors. 

 

In the opening session, Secretary, DPIIT, Shri Rajesh Kumar Singh highlighted achievements of PLI Scheme and its potential to revolutionize the manufacturing sector going forward. The opening session was followed by two interactive sessions covering all the 14 sectors, with the objective of exploring areas of collaboration between the Government and industry champions and creating a clear action plan for successful implementation of PLI Schemes. It provided a unique forum for industry leaders, experts, and Government Officials to engage in insightful discussion and exchange valuable insights on the impact of PLI Schemes. 

 

During the interactive sessions, representatives from beneficiary companies expressed their perspectives on the PLI Schemes, sharing valuable insights into their experiences, challenges faced, and suggestions for improvement to enhance effectiveness and streamline implementation processes. The engagement proved to be a constructive platform for open communication between industry stakeholders and the implementing Ministries/ Departments. The meeting facilitated immediate discussions on raised issues, allowing for on-the-spot clarification and resolution by the concerned Ministries/ Departments, demonstrating a commitment to addressing challenges promptly. 

 

The objective of the Meeting was to bring all stakeholders on a common platform, fostering a sense of ownership to facilitate sharing of knowledge and experiences, good practices and success stories ultimately contributing to the successful implementation of PLI Schemes. 

 

Around 1200 delegates, from beneficiary companies under PLI Scheme for 14 sectors, came together to discuss and chart out the strategy for effective and seamless implementation of PLI Schemes. The meeting also witnessed participation from senior officials of NITI Aayog, 10 implementing Ministries/ Departments viz. DPIIT, M/o Electronics & Information Technology, D/o Telecommunications, M/o Heavy Industries, M/o New & Renewable Energy, M/o Civil Aviation, D/o Pharmaceuticals, M/o Food Processing Industries, M/o Textiles & M/o Steel and respective Project Management Agencies (PMAs) under PLI Schemes. 

 

The meeting concluded with a joint commitment from all participants to actively engage in the PLI Schemes and maximize the utilization of the available incentives to their fullest extent. 

There is no adverse impact on India's exports and imports so far due to the Red Sea crisis, an official said. The official said that the transportation cost has increased as the shippers are taking a long route.

 

'There is no impact in volume terms so far. Only the transportation cost is up. It has risen for all the countries. It has not affected the trade adversely so far. We have to see the long term demand, but it will depend on the EU and the US,' the official added.

 

These two regions account for over 30 per cent of the country's total exports.

 

However, exporters said that they are keeping their fingers crossed as due to the significant jump in freight cost, India's exports may be impacted.

 

The trade data for January will be released by the commerce ministry on February 15. In December last year, exports rose marginally by one per cent to USD 38.45 billion.

 

Due to the attacks by Yemen-based Houthi rebels on commercial ships, the movement of goods from the Red Sea, the world's busiest shipping route, has disrupted the global supply chains as vessels have to take long routes for exports and imports.

 

The immediate ripple effects are seen in increased freight costs, mandatory war risk insurance, and significant delays due to rerouting.

 

According to think tank GTRI, the average container spot rates have more than doubled since early December 2023.

 

Basmati rice exporters face freight costs soaring to USD 2,000 per 20-tonne container for destinations around the Red Sea, marking a 233 per cent increase, it has said in a report.

 

Houthi group has been using drones and rockets to target ships, which are transporting goods through the strait of Bab al-Mandab, which is a crucial shipping route connecting the Mediterranean Sea to the Indian Ocean.

 

The strait, vital for 30 per cent of global container traffic, has seen increased tensions with various incidents in 2023, including attacks and military manoeuvres by regional and global powers.

 

India is heavily reliant on this route for trade and energy imports and due to the disruptions, exporters here have to diversify their trade routes.

 

Strikes have been continuing for many years but escalated this year sharply, with militants now using anti-ship ballistic missiles.

 

To avoid attacks, most large shipping firms, since December 15 last year, have stopped using the Bab al-Mandab straits for trade with Europe via the Red Sea and Suez Canal. The closure of this route snaps a critical trade link between Europe and India and all of Asia.

 

Ships going to Europe will now move via a much longer route around the Cape of Good Hope, the bottom tip of Africa. This change increases voyage distances by 40 per cent and raises transportation time and cost.

 

The two main shipping routes from India to Europe are via Bab-el-Mandeb Strait, Suez Canal and Red Sea; and via Cape of Good Hope, encircling Africa.

 

The Red Sea route is shorter and faster, making it the preferred option for most shipping companies. It starts from major Indian ports like Mumbai, JNPT, or Chennai, heads westward through the Arabian Sea, enters the Red Sea, and navigates through the Suez Canal into the Mediterranean Sea.

 

From there, ships can reach various European ports depending on their destinations.

 

On the other hand, the Cape of Good Hope route is longer and slower than the Suez Canal route, but it avoids the potential for delays or disruptions.

 

It is used for bulk cargo shipments where time is less critical or when political instability in the Middle East raises concerns about using the Suez Canal.

 

It starts from the Indian ports, heads southward across the Indian Ocean, rounds the Cape of Good Hope at the southern tip of Africa, and then sails northward along the west coast of Africa before entering the Mediterranean Sea and reaching European ports.

 

India is heavily reliant on this strait for its crude oil, LNG imports and trade with the Middle East, Africa, and Europe.

Ministry of Food Processing Industries (MoFPI) has been implementing a Central Sector Scheme- 'Operation Greens (OG)'– A scheme for development of Tomato, Onion and Potato (TOP) value chain since 2018-19. The coverage of the scheme has since been expanded from 3 crops (Tomato, Onion & Potato) to 22 perishables crops which include 10 fruits, 11 vegetables (including TOP) and 1 marine i.e. shrimp as per the Union Budget 2021.

 

The scheme has two pronged strategy of Price Stabilization Measures (short term measure) and Integrated Value Chain Development Projects (long term measure). Under the short term interventions of the scheme, MoFPI provides transportation (including air)/storage subsidy for eligible crop @ 50 % of eligible cost. In case of export, subsidy towards transportation charges is payable only upto Indian borders. Subsidy released under Short Term Interventions of the OG scheme is as below:

 

 (Rs. in crore)

FY	Kisan Rail	Subsidy (Short Term)	Total
2020-21	23.33	1.58	24.91
2021-22	54.46	3.74	58.20
2022-23	0	29.99	29.99
2023-24	0	2.00	2.00
Total	77.79	37.31	115.10

MoFPI through implementation of the Central Sector Scheme, namely, Pradhan Mantri Kisan Sampada Yojana (PMKSY), interalia, helps in creation of modern infrastructure with efficient supply chain management from farm gate to retail outlet across the country. The scheme not only provide a boost to the growth of food processing sector in the country but also helps in, interalia, reducing wastage of agricultural produce, increasing the processing level and enhancing the export of the processed foods.

 

MoFPI is also implementing a Centrally Sponsored Scheme- PM Formalisation of Micro Food Processing Enterprises Scheme (PMFME) for providing technical, financial and business support for setting up/upgradation of 2 lakh Micro Food Processing Enterprises. Production Linked Incentive (PLI) scheme also launched by MoFPI for the period 2021-22 to 2026-27 to create global food champions and improving the visibility of Indian food brands abroad.

 

No State/UT-wise allocation and release of funds is made specifically for promotion of exports, under any of the above three schemes implemented by MoFPI.

 

This information was given by Minister of State for Food Processing Industries Km. Shobha Karandlaje) in a written reply in the Rajya Sabha today.

India has sustained its export growth notwithstanding the global challenges emerging due to issues like the Israel-Hamas war and the Budget has laid out a strong foundation to push the economic growth, Commerce and Industry Minister Piyush Goyal said on Thursday. The minister said that certainly, the country is facing 'very severe' challenges due to these conflicts.

 

'But despite these challenges, India continues to be a bright spot in terms of economy, economic growth, and we continue to broadly sustained our exports...I think, the Indian story is a story of resilience, and strength,' Goyal told PTI in a post-budget interaction.

 

In her budget speech, Finance Minister Nirmala Sitharaman stated that geopolitically, global affairs are becoming more complex and challenging due to wars and conflicts.

 

'Globalization is being redefined with reshoring and friend-shoring, disruption and fragmentation of supply chains, and competition for critical minerals and technologies. A new world order is emerging after the Covid pandemic,' Sitharaman said.

 

The Russia-Ukraine war, the Isreal-Hamas conflict and the Red Sea crisis have disrupted the global supply chains. Red Sea is the busiest trade route as it accounts for 30 per cent of global container traffic and 12 per cent of global trade.

 

Goyal said due to these challenges the growth potential on the trade front that we had is 'slowing very significantly and showing weakness'.

 

He added that due to these wars and crises, 'our logistics, our shipment lines, out of India for exports' are getting impacted significantly.

 

India's exports rose by only 1 per cent to USD 38.45 billion in December 2023 while the trade deficit narrowed to a three-month low of USD 19.8 billion, according to the government data.

 

Exports during April-December this fiscal dipped by 5.7 per cent to USD 317.12 billion. Imports contracted by 7.93 per cent to USD 505.15 billion, leaving a trade deficit of USD 188.02 billion in the first three quarters as against USD 212.34 billion in April-December 2022.

 

Welcoming the budget proposals, Goyal said that the Budget has focused on every section of the society.

 

Announcements pertaining to e-mobility promotion and increase in infrastructure spending will provide 'more and more' opportunities for business and domestic industry, Goyal stated.

 

'Every infrastructure project means greater degree of sale of goods, steel, cement, furnishing. It touches so many different segments of industry,' Goyal said.

 

'When we talk about greater exports and greater economic activity, people get opportunities in services, logistics, the transportation sector gets a leg up,' the minister said.

 

He said that the Budget has laid out a strong foundation to push the country's economic growth.

 

Sitharaman announced a Rs 11.11 lakh crore spending on infrastructure and vowed to continue reforms as she resisted resorting to populist measures in Modi government's last Budget before general elections, instead choosing to stay on the path of cutting deficit while bolstering measures for focus groups.

 

Giving a sneak preview of what will be the Modi government's priority in the third term, if re-elected, she said economic policies that foster and sustain growth, facilitate inclusive development and contribute to generation of resources to power investments will be adopted towards making India a developed country by 2047.

 

'The next five years will be years of unprecedented development and golden moments to realise the dream of developed India by 2047,' she said.

The government on Friday informed Parliament that the crisis in Red Sea, at present, has not much affected the availability of containers in most of the ports.

 

'Some increase in freight cost has been reported by industry. Exports from India are continuing as the sailings of containers carrying ships from India have been diverted via the Cape of Good Hope route,'minister of state for commerce and industry Anupriya Patel said in a written reply to Rajya Sabha.

 

Patel said that the Indian Navy has 'substantially enhanced' maritime surveillance efforts in central/north Arabian Sea and augmented force levels and aerial surveillance by long-range maritime patrol aircraft and RPAs has been enhanced to have a complete maritime domain awareness.

 

'Towards effective surveillance of EEZ, Indian Navy is operating in close coordination with Coast Guard.

The overall situation is being closely monitored by the government,' she said.

 

TOY IMPORTS

The manufacturing ecosystem Indian Toy industry has witnessed remarkable growth, leading to substantial decrease of 52% in overall import of toys to $158.7 million in FY23 from $332.55 million in FY15.

 

Minister of State for Commerce and Industry Som Parkash told Rajya Sabha that there has been a 239% in the exports of toys to $325.72 million in FY23 from

$96.17 million in FY15.

 

Some of the measures to promote the sector include promoting Made in India toys; designing of toys based on Indian values, culture, and history; using toys as a learning resource; organizing hackathons and grand challenges for toy designing and manufacturing; monitoring quality of toys; restricting imports of sub-standard and unsafe toys and promoting indigenous toy clusters.

 

COPPER INDUSTRY

Minister of state for commerce and industry Anupriya Patel told Rajya Sabha that the closure of the Tuticorin smelter plant of Vedanta in Tamil Nadu has affected the domestic production of refined copper.

 

'The spurt in imports in last two years is due to increased demand in copper refining reflecting a post pandemic recovery, especially the growth in user sectors such as infrastructure, construction, telecom, electrical, renewable energy and electric vehicles,' she said in a written reply to the Upper House.

 

In April-November 2023-24, the imports of copper and its products were $6.4 billion as against $4.9 billion a year ago.

 

'Due to environmental concerns and public safety risks, the Tamil Nadu Government ordered the plant’s closure in May 2018. The matter is presently sub-judice in Hon'ble Supreme Court,' she said.

 

In a separate reply, the minister said that the extent to which Indian industry and the ease of doing business have been impacted by copper imports in the recent past is multifaceted and influenced by various factors including industry dynamics, regulatory environment, government policies, supply chain resilience, etc.

 

'The surge in imports of copper into India in the last two years is attributed to increased demand in copper due to rapid economic growth, infrastructure development, and the ongoing transition to green energy e.g. renewable energy and electric vehicles,' she said, adding that the increased demand also reflects post pandemic recovery in economy.

 

STARTUP ECOSYSTEM

There were 1.17 lakh startups recognised by the Department for Promotion of Industry and Internal Trade (DPIIT) as on December 31, 2023. These recognised startups are reported to have created over 12.42 lakh direct jobs creating significant economic impact, commerce and industry ministry told Parliament.

 

'There is at least one recognised startup in every state and Union Territory spread across over 80% of the districts across the nation,'Minister of State for Commerce and Industry Som Parkash said in a written reply.

 

Since the launch of the Startup India initiative in 2016 by the government, 55,816 DPIIT recognised startups have at least one-woman director as on December 31, 2023.

Aiming to check very high prices of potatoes, the Bangladesh government has approved the import of 34,000 tonnes of potatoes from India. A total of 25 tonnes of potato arrived in Bangladesh through Dinajpur’s Hili land port from India on Saturday afternoon. As a result, the price of potatoes came down to Taka 25-30 per kg at retail markets from Taka 40-45  in the country.

 

Land port officials told the local media persons that the government has decided to import potatoes from India to rein in the soaring price of the vegetable ahead of Ramadan. A total of 49 traders will be able to start importing the potatoes from Saturday or Sunday, he added.

 

A local wholesale trader said that the price of potato went out of control due to shortage of the supply in Bangladesh's market last year. On October 30, the Bangladesh government allowed import of potatoes from India to maintain supply and to keep the situation normal. Since then, the price of imported potatoes has come down in the market. Following the market stability, Bangladesh again stopped importing potatoes through Hili land port from December 15.

India has sought greater market access for certain products such as steel, rice, and shrimp from South Korea with a view to boost exports of these goods, an official said. These are part of the negotiations, which are underway, for the upgradation of the existing free trade agreement between the two countries, which is officially dubbed as comprehensive economic partnership agreement (CEPA).

 

The agreement was operationalised in January 2010. The 10th round of upgradation talks are underway here.

 

'We are asking for greater market access for products such as steel, rice and shrimp,' the official said.

 

In the meeting, India has flagged issues over Korean firms not buying Indian steel.

 

'Korean firms in India also place orders from their local firms in Korea, so this is a double whammy for Indian companies. The Korean side has asked for an increase in price competitiveness here,' the official added.

 

On rice, there is a tariff rate quota of five lakh tonnes in Korea. Under this, they have given a quota of 4.8 lakh tonnes to five countries -- China, Australia, the US, Thailand and Vietnam -- and the rest of the countries have a quota of only 20,000 tonnes.

 

'India is in the others category. So we are demanding either to put India in the country's specific category or increase our quota. South Korea has an import duty of 513 per cent on rice,' the official said, adding on shrimp, there is an import duty of 5 per cent.

 

On the other hand, Korea wants greater access in sectors such as auto components and chemicals.

 

The ninth round of India-Korea CEPA upgradation negotiation was held in Seoul from November 3-4, 2022.

 

Both sides shared the hope that the CEPA upgradation negotiations would play an important role in strengthening and deepening economic cooperation between both countries.

 

India raised serious concerns on the growing trade deficit between the two countries. India's exports to that county stood at USD 6.65 billion in 2022-23 as against USD 8 billion in 2021-22. The imports, however, were USD 21.22 billion in 2022-23 and USD 17.5 billion in 2021-22.

 

The Government of India has taken several steps/initiatives to make the country self-sufficient in the production of pulses. The Department of Agriculture & Farmers Welfare (DA&FW) is implementing the National Food Security Mission (NFSM)-Pulses in 28 States and 2 Union Territories (Jammu & Kashmir and Ladakh) with the objective to increase production of pulses through area expansion and productivity enhancement. Under NFSM-Pulses, assistance is given through States/UTs to the farmers for interventions like cluster demonstrations on improved package of practices, demonstrations on cropping system, seed production and distribution of high yielding varieties, improved farm machineries/resource conservation machineries/tools, efficient water application tools, plant protection measures, nutrient management/soil ameliorants, processing & post-harvest equipment, cropping system based trainings etc. In addition, the certified seeds of high yielding varieties of pulses are provided in the form of seed minikits at free of cost to the farmers. The Mission also provided support to Indian Council of Agricultural Research (ICAR) & State Agricultural Universities (SAUs) / Krishi Vigyan Kendras (KVKs) for technology back stopping and transfer of technology to the farmer under supervision of Subject Matter Specialists/Scientists. 150 seed hubs on pulses have been set up under NFSM to augment the availability of quality seed of pulses.

 

Government of India also provides flexibility to the states for state specific needs/priorities under Rashtirya Krishi Vikas Yojana (RKVY). The states can promote pulses under RKVY with approval of State Level Sanctioning Committee (SLSC) headed by Chief Secretary of the State.

 

The Minimum Support Prices (MSPs) for pulses have also been increased over the years to encourage the farmers to grow more pulses by ensuring remunerative prices.

 

In order to increase the productivity potential of pulses crops in the country, Indian Council of Agricultural Research (ICAR) undertakes basic and strategic research on these crops and applied research in collaboration with State Agricultural Universities for developing location specific high yielding varieties and matching production packages.

 

 During the last five years (2018-19 to 2022-23), total pulses production has increased by 18%. Based on the production estimates for the year 2022-23, Madhya Pradesh, Maharashtra and Rajasthan are the top three pulses producing states in the country.

 

This information was given by the Union Minister of Agriculture and Farmers’ Welfare, Shri Arjun Munda in a written reply in Rajya Sabha today.

The inter-mandi trade on e-NAM (National Agriculture Market) witnessed more than two times growth during the first nine months of 2023-24.

 

Replying to a query in the Rajya Sabha on Friday, Arjun Munda, Union Agriculture and Farmers’ Welfare Minister, said inter-mandi trade increased from Rs.436.3 crore during 2022-23 (April-December) to Rs.1,137.1 crore in 2023-24 (April-December).

 

Inter-state trade on e-NAM increased from Rs.1 crore during 2022-23 (April-December) to Rs.40 crore in 2023-24 (April- December). As on December 31, a total trade value of Rs.3 lakh crore was recorded on e-NAM platform.

 

e-NAM is a pan-India electronic trading portal which seeks to network the existing physical APMCs (agricultural produce market committees) through a virtual platform to create a unified national market for agricultural commodities. This platform provides a single window service for all APMC-related information and services. This includes commodity arrivals, quality and prices, buy and sell offers, provision to respond to trade offers and electronic payment settlement directly into farmers’ account, among other services.

 

As many as 1,361 mandis were integrated with e-NAM platform as on March 31, 2023, and 1.8 crore farmers were registered with it.

 

AI to tackle agri problems

To a separate query on the use of AI (artificial intelligence) to tackle problems in agriculture, the Minister said the Ministry has employed AI methods to address various challenges in the agricultural sector to aid farmers.

 

Giving the example of ‘Kisan e-Mitra’, an AI-powered chatbot to assist farmers with queries about the PM Kisan Samman Nidhi (Pradhan Mantri Kisan Samman Nidhi) scheme, he said this solution supports multiple languages and is evolving to assist with other government programmes.

 

Referring to the use of National Pest Surveillance System for tackling the loss of produce due to climate change, he said this system uses AI and Machine Learning to detect crop issues, enabling timely intervention for healthier crops.

 

Wheat, rice production

To another question on the production of foodgrains, Munda said the country witnessed a record foodgrain production of 3,296.87 lakh tonnes (lt) during the agricultural year 2022-23, registering an increase of 30.82 per cent compared to 2,520.25 lt in 2014-15.

 

He said the production of rice, wheat and pulses stood at 1,357.55 lt, 1,105.54 lt and 260.58 lt, respectively, during 2022-23, registering an increase of 28.7 per cent, 27.77 per cent, and 51.90 per cent over their respective production of 1,054.82 lt, 865.27 lt and 171.54 lt in 2014-15.

 

'The growing foodgrains production in the country is due to higher budget allocation to agriculture sector and successful implementation of various scheme and programmes by the Ministry of Agriculture and Farmers’ Welfare,' he said.

 

PM KISAN

To a separate question on the recovery of funds under PM-KISAN, the Minister said a few states reported instances of fraudulent transactions under the scheme. Following this, recoveries have been made from fraudulent beneficiaries by the state governments concerned. A total Rs.335 crore has been recovered from such beneficiaries, he said.

 

As per operational guidelines of the scheme, it is the responsibility of the states/union territories to identify and verify the eligible beneficiaries under the scheme. Benefits are transferred to the beneficiaries through direct benefit transfer mode on the basis of verified data received from the states/union territories on the PM-KISAN portal. To help the states/union territories for automated validation of the beneficiaries’ data, PM-KISAN portal has been integrated with the portals of Unique Identification Authority of India for aadhaar authentication; with Public Finance Management System for validation of account and Government employees / pensioners data; with Income Tax department for validation of income tax payee status; and with National Payment Corporation of India for account validation and Aadhaar-based payments.

 

Eligible farmers are enrolled and deceased / ineligible beneficiaries are removed by way of continuous verification and validation of the beneficiary’s data. The states/union territories have been provided with the option to mark beneficiaries as eligible to ineligible and vice versa after due verification. eKYCof all the beneficiaries is also done to verify their status. States/union territories have been asked to expedite the process for saturation of the scheme with all the eligible beneficiaries and removal of ineligible beneficiaries, he said.