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.