The Central government is planning to offer incentives worth Rs 1.68 trillion (USD 23 billion) to attract companies to set up manufacturing units in India. It will offer production-linked incentives to automobile manufacturers, solar panel makers, and specialty steel to consumer appliance companies.
Textile units, food processing plants and specialised pharmaceutical product makers are also being considered for the plan.
The government is also planning to introduce a phased manufacturing programme for other sectors to allow companies to gradually increase local value-addition.
The programme, currently underway for components and accessories used for mobile phones, is proposed to be extended for furniture, plastics, toys and low-value consumer durables.
The details of both the programmes are being worked out and will be put up for approval of the federal Cabinet soon.