PLI Expansion and Export Push: Parliamentary Panel Advice

Why in the news

A parliamentary committee urged wider PLI coverage, quicker e-commerce policy, better export credit support and a sharper FTA approach.

PLI scheme

• Covers 14 sectors, outlay ₹1.97 trillion (mobiles, drones, white goods, telecom, textiles, autos, specialty steel, pharma).
• Proposed additions: chemicals, leather, apparel, handicrafts, plus defence manufacturing, aerospace and ship containers.
• Labour-intensive sectors create jobs; defence and aerospace build self-reliance; wider coverage diversifies exports.
• A robust framework to monitor and report PLI impact is needed for course correction.

E-commerce policy

• The National E-Commerce Policy (DPIIT) has no clear launch date, creating regulatory uncertainty.
• Timely finalisation helps consumer protection, data governance and cross-border trade.

Export competitiveness

• The Interest Equalisation Scheme (IES) gave export credit cost relief but ended on 31 December, merged into the ₹2,250 crore Export Promotion Mission.
• Panel wants immediate operationalisation and IES features retained with adequate funds; MSME exporters need cheap credit.

FTA strategy

• Talks under way with US, UK, EU, Oman and New Zealand (aim: end-2025) and a comprehensive pact with Australia.
• Panel wants faster deals and more exports to Australia, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore and Vietnam, where deficits exist.
• Targeting specific products cuts imbalances and lifts high-value exports such as electronics, pharma and processed food.

Concerns and way forward

The government should use time-bound frameworks, continuous monitoring and export market intelligence.

Exam angle

• PLI: 14 sectors, ₹1.97 trillion.
• Export Promotion Mission: ₹2,250 crore; absorbed IES.